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Janel Knight Trulear
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National Small Business Survey: Owners Say Hospital Consolidations Contribute to High Healthcare Costs for Main Street

A national survey of more than 1,000 small business owners shows that entrepreneurs believe the increasing pace of hospital consolidations is exacerbating the already high cost of healthcare and want lawmakers to address the issue 

Washington, D.C., March 21, 2023—A new national survey of 1,015 small business owners shows that Main Street entrepreneurs believe the increasing pace of hospital consolidations is exacerbating the high costs of healthcare and the vast majority support regulating consolidation and creating price controls.

A majority of small business owners surveyed say they have seen hospital consolidation in their communities and believe this leads to less choice, longer wait times, and fewer services—in addition to driving up healthcare costs overall. They also say that the high cost of healthcare has stifled their growth: 

• 45% of small business owners said the rising price of health insurance has led them to delay growth opportunities for their businesses
• 41% said they have increased the cost of goods and services
• More than a third have said they have become less competitive in hiring compared to other companies that provide health benefits

“This survey shows small business owners need our leaders to take a look at how hospital consolidation and pricing are hurting small businesses by driving up healthcare costs. Mom-and-pop business owners are being priced out of the ability to offer health insurance to their employees, and hospital consolidation and pricing are a big contributor to the problem,” said Small Business for America’s Future Co-Chair Dr. Erika Gonzalez. “The cost of healthcare is also holding back their ability to invest in the growth and success of their businesses.” 

The survey shows strong small business owner support for regulating hospital consolidation and pricing: 

• More than 80% say it's important that federal and state governments intervene in the consolidation of health systems
• Nearly 90% say hospitals are unfairly charging high prices leading to high healthcare costs and it's time for price regulation
• 88% of business owners support limiting the prices charged by hospitals with particularly high payment rates to no more than two times what Medicare pays for the service



“Small business leaders want our policymakers to take action to address the rising costs of healthcare and ensure that small business owners and their employees have access to affordable, quality healthcare,” said Dr. Gonzalez.

View the full survey report here. 

To schedule an interview with a representative from Small Business for America’s Future contact: Janel Knight Trulear at janel@emccommunications.com or (617) 875-6581.

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About Small Business for America’s Future

Small Business for America’s Future is a national coalition of small business owners and leaders working to provide small businesses a voice at every level of government. We’re committed to ensuring policymakers prioritize the nation’s 30 million small businesses to create an economy that works for them, their workers and their communities. Visit www.smallbusinessforamericasfuture.org. Follow us on Twitter and Facebook. #SmallBizAF.