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Rural Revival | Osawatomie State Hospital's economic influence on small-town Kansas

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Osawatomie State Hospital

KSHB 41 reporter Ryan Gamboa covers Miami County in Kansas and Cass County in Missouri. He also covers agricultural topics. Share your story idea with Ryan.

The past few weeks, KSHB 41 has shared a number of stories involving a poor legislative safety and security audit at the Osawatomie State Hospital (OSH).

The Kansas Legislative Division of Post Audit (KLPA) found OSH does not adequately ensure the safety and security of its staff.

Stepping away from the hospital's shortcomings, the Osawatomie State Psychiatric Hospital offers several important benefits to rural Kansas.

Rural Revival | Osawatomie State Hospital's economic influence on small-town Kansas
Osawatomie State Hospital
Osawatomie State Hospital

"It's a huge employer," said Jamie Reavis, a former Mental Health Technician at Osawatomie State Hospital.

She's right.

According to the KLPA audit, OSH had 533 authorized positions in fiscal year 2024.

"It's right over the hill and there's no other employment opportunities unless you go to Paola, Gardner, or Olathe, then you're getting to about an hour transit," Reavis told KSHB 41.

Jamie Reavis
Jamie Reavis

A 2016 Bureau of Economic Analysis report, found the leading employment industry in Miami County, Kansas is Government and Governmental Enterprises at 17%. Health Care and Social Assistance and Retail Trade followed at 11%. All other industry sectors made up the second largest bulk at 14%.

"Around here the state hospital is kind of the only employer," added Reavis.

Paola Flower Market, Miami County
Paola, Kansas business

Miami County administrators provided KSHB 41 with a 2023 Economic Analysis report, estimating OSH's impact on the county.

The report stated a construction project, which a local company was contracted to remodel two wings of a building on the hospital campus, totaling $7.2 million.

Miami County Construction
Miami County Construction

The construction was expected to bring in $10 million to the area, creating an estimated 60 jobs, and $2.4 million in household earnings during the construction period.

The Osawatomie State Hospital operated under a $57.6 million budget, according to the report.

That year, the hospital's operating activities created a $79.5 million in industry output to the Miami County Economy, supporting 628 jobs, and created $18.8 million in household earnings.

Paola Home, Miami County
Paola, Kansas home

OSH's impact isn't only felt nearby. It spreads to other communities in surrounding county's.

Kansas Rep. Fred Gardner (R - District 9, Garnett) says there's a number of constituents in his district that rely on the hospital.

"It is an economic driver," Gardner explained. "Its services provide employment and opportunity in our communities..."

Fred Gardner
Kansas Rep. Fred Gardner (R-Dist. 9) from Garnett, Kansas

A veterinarian by trade, Gardner told KSHB 41 his roots at the state hospital go back to his grandmother.

For years, OSH has had an important role in rural western Kansas, especially his district covering southern portions of Miami County, Anderson, and Allen counties.

"They spend their money locally for the most part," he added. "I think it brings a higher level of satisfaction within the community."

Miami County Road Sign
Miami County Road Sign

Earlier this month, Osawatomie City Manager Bret Glendening lobbied the Kansas State Senate.

On behalf of the city, he requested the introduction of Senate Bill 146.

In an email, Glendening told KSHB 41 the legislation would renew the City of Osawatomie's land agreement with the state at the state hospital.

Bret Glendening
City of Osawatomie City Manager Bret Glendening in a Fall 2024 interview with KSHB 41.

If passed, it would extend the land agreement to 2046 and portions of city's state deed land can be used for economic development.

Since the land was deeded to the city in 2005-2006, the City of Osawatomie says it has spent time responding to 'Request For Information' (RFI) from site consultants.

Glendening told KSHB 41 the city responded to five RFI's per year since 2007 and has been shortlisted on average, one time.

6th Street, Osawatomie

Recently, Osawatomie sold a 13-acre parcel to an entrepreneur to start a paintball course.

It also leased 80 acres to Evergy for the town's new Solar Array.

Senate Bill 146 would allow for continued economic development in southwest Miami County.

The city and county have taken on all the costs to develop utilities in the area.

Osawatomie Solar Site
City of Osawatomie Solar Site in conjunction with Evergy.

According to the city leadership, developing the land helps reduce everyone's property tax burden, because to costs of government are being spread out among more taxable property.

Miami County alone understands the importance of it's relationship with the State of Kansas near the hospital, anticipating that relationship will grow for another 20 years.

"We are supporting the work that Osawatomie is doing," Laura Howard, Secretary of Kansas Department for Aging and Disability Services told KSHB 41. "We have a number of agreements with the community that are incredibly important."

Secretary of KDADS, Laura Howard
KDADS Secretary Laura Howard

While there is a positive economic impact to rural western Kansas, Secretary Howard acknowledges improvements in procedures and practices at the hospital need to be made.

The audit was requested by five Kansas legislators: Rep. Samantha Poetter Parshall (R- District 6), Sen. Caryn Tyson (R- District 12), Rep. Carrie Barth (R- District. 5), Rep. Fred Gardner (R- District 9) and former Sen. Molly Baumgardner (R- District 37).

KSHB 41 received a response to an interview request or phone call from one of the five legislator names on KLPA's audit.

Tyson told KSHB 41 the Osawatomie State Hospital is an important issue but did not have time to discuss it during a phone call. KSHB 41 later reached out in an email seeking an interview and did not receive a response.

If you're a current or former employee at Osawatomie State Hospital, KSHB 41 News reporter Ryan Gamboa would like to hear your voice. To contact Ryan, send him an email at ryan.gamboa@kshb.com.

To review the entire KLPA audit at OSH, click here.