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Small Business Survey: Texas Owners Say Hospital Consolidations Contribute to High Healthcare Costs for Main Street

The Texas results of a national survey of more than 1,000 small business owners show that Lone Star State entrepreneurs believe the increasing pace of hospital consolidations is exacerbating the already high cost of healthcare and want action

San Antonio, Texas, March 21, 2023—The Texas responses in a new national Small Business for America’s Future survey of 1,015 small business owners show that Main Street entrepreneurs in the Lone Star State 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.

“Small business owners across the state want to see solutions to high hospital costs so they and their employees can get affordable, quality healthcare,” said Dr. Erika Gonzalez, Co-Chair of Small Business for America’s Future and past Board Chair of the San Antonio Hispanic Chamber of Commerce. “Better than most, small business owners understand that competition leads to better prices and innovation. They would welcome solutions to hospital consolidation and high prices.”

More than four in 10 Texas survey respondents said they have seen hospital consolidation in their communities and many say this leads to less choice, longer wait times, and fewer services—in addition to driving up healthcare costs overall.

• 85% of Texas small business owners responding to the survey say that the consolidation of hospitals in their areas have made the overall availability and quality of healthcare services in their communities worse
• 75% say the availability and cost of health insurance has been negatively impacted by hospital consolidation
• 82% of small business owners say that hospital consolidation leads to a lack of competition making hospital services more expensive for employees and eating into their pay.
• 86% say it's important that federal and state governments intervene in the consolidation of health systems
• 90% say that hospitals are unfairly charging high prices leading to high healthcare costs and it's time for price regulation

“Mom and pop business owners are being priced out of the ability to offer health insurance to their employees, and hospital consolidation and unfair pricing practices are a big contributor to the problem,” said Dr. Gonzalez, who is also CEO, President and Co-Founder of South Texas Allergy and Asthma Medical Professionals (STAAMP) and STAAMP Clinical Research in San Antonio. “The cost of healthcare is holding back their ability to invest in the growth and financial health of their businesses.” 

Small business owners across the country have long said high healthcare costs are their top policy priority. The national survey reaffirms that the expense is stifling the growth of America’s small businesses: 

• 45% of small business owners nationally 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

What Texas small business owners are saying about the high cost of healthcare and hospital consolidation:

“Hospital consolidation is driving healthcare costs up, making hospital services more expensive and eating into my employees’ pay. Lowering healthcare costs will help small business owners in Texas. I ask our representatives to take action and ensure that small business owners and their employees have access to affordable, quality healthcare.”

Elizabeth Frisch
Thrival
Austin, TX

“As a small business owner, I struggle to pay for healthcare coverage in Texas. Hospital consolidation in my county has drastically limited my choice of providers, as well. Other Texas women my age who earn less than I do are not even eligible for Medicaid. All Texans deserve affordable, quality healthcare. We need action now.”

Debbie Hollis
Debbie Hollis Artist & Nonprofit Consultant
Waskom, TX 

“The increasing pace of hospital consolidations across the country is exacerbating the high cost of healthcare and it’s time for action. Texas small business owners and their employees deserve affordable, quality healthcare. Policymakers must take action to help small business owners, their employees, and our economy.” 

Gwen Maupin
Seneca Construction Management LLC
Kempner, Texas 

“As a small business owner, I understand the value of competition  hospital consolidation is driving up healthcare costs, leading to longer wait times, and fewer services. The increasing pace of hospital consolidations in Texas needs to be regulated.”

Elizabeth Arzu
Rosewood Enterprise
Poteet, TX 

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.