Corporate hospital systems and their rapid consolidation are wreaking havoc on our local economies, and Missouri is no exception.
In today’s increasingly consolidated healthcare landscape, a recent National Bureau of Economic Research (NBER) study offers a sobering reality check for employers and employees alike. We’ve long suspected that hospital mergers drive up healthcare costs, but now we know the full extent of the damage: these consolidations are quietly undermining local economies, shrinking payrolls, and disproportionately hurting low- and middle-income workers. As an employer deeply invested in the wellbeing of our employees and the community, I believe it’s time to sound the alarm.
The numbers tell the full story. For every 1 percent increase in healthcare prices following a hospital merger, firms outside the healthcare sector experience a 0.4 percent drop in both payroll and employment. These job losses primarily hit workers earning between $20,000 and $100,000 annually. When the average salary in Missouri is just over $50,000, these price increases are hitting the backbone of our workforce. For an average hospital that raises prices by 5 percent post-merger, the toll is devastating: over 200 healthcare and non-healthcare jobs are lost. That’s 200 livelihoods and countless families affected, not because of a declining economy or poor business decisions, but because of rising healthcare costs driven by corporate greed.
Missouri hospitals are a prime example of this trend, with the Mercy Hospital System leading the charge. Over the past year, Mercy has embarked on an aggressive expansion spree, starting with the acquisition of SoutheastHealth in Cape Girardeau. This move was quickly followed by an announcement to acquire Ascension Via Christi Hospital in Pittsburg, Kansas, further extending Mercy’s reach across state lines. As if that weren’t enough, Mercy has also committed to a staggering $650 million construction project in Wentzville, Missouri, aimed at building a new state-of-the-art facility. These actions may appear to be signs of growth and progress on the surface, but they come with a hefty price tag.
The real question is: where is the money coming from to fuel this rapid expansion? The answer isn’t hard to find. Missouri’s employers and consumers are the ones footing the bill. As Mercy expands its empire, it’s the people in our communities who will bear the brunt of the costs, through higher healthcare prices, inflated insurance premiums, and reduced economic stability. This burden doesn’t just impact those who walk through Mercy’s doors; it ripples across our entire state, threatening the financial well-being of businesses and families alike.
It’s only a matter of time before the rest of us are left footing the bill for Mercy hospitals.
As employers, we must recognize that rising healthcare costs aren’t just hurting our bottom lines; they’re decimating the job market for the very workers who drive our businesses forward. The NBER study makes it abundantly clear: hospital consolidation is not just a healthcare issue— it’s an economic issue. Missouri’s employers and policymakers must take a stand against these mergers before they further erode our local economies, destroy jobs, and widen the gap between the wealthy and the working class.
It’s time we demand transparency and accountability from our hospitals, starting with Mercy Hospital System. We cannot afford to sit idly by as these consolidations wreak havoc on our communities. The stakes are too high—for our businesses, our workers, and our state’s future.
Co-founder of Keyser Enterprises and operates multi-franchise operations throughout the Midwest with his brother.
