A Special 3-Part Series by The Narrative Matters
Part 1 of 3 | Part 2 | Part 3
Breaking Promises: SSM Health’s Shortfall in Minority Participation Goals
In the heart of St. Louis, a massive construction project promised to be a beacon of economic hope. The new $467 million SSM Health Cardinal Glennon Children’s Hospital wasn’t just about building a state-of-the-art medical facility; it was supposed to build wealth in the community through fair contracts for minority and women-owned businesses (M/WBEs).
However, recent projections reveal a disturbing reality. Instead of serving as a model for equitable development, the project is currently falling short of its promises by a staggering margin. SSM Health, the institution behind the project, is projecting a participation gap of $74 million against its contractual commitments. This isn’t just a missed target; it is a significant blow to economic justice in the region.
The Promise: A Binding Agreement for Equity
When the Midtown Redevelopment Plan was established, it wasn’t just a green light for construction. It came with strings attached—strings designed to pull up the local economy. The plan, codified in Ordinance 70428, included a Community Benefits Agreement (CBA). This agreement, signed by major stakeholders including the NAACP, Saint Louis University, and SSM Health, was meant to ensure that the massive investment in Midtown benefited everyone, not just a select few.
The CBA set clear, ambitious, but achievable goals for M/WBE participation. The target was 35% overall participation, amounting to approximately $163 million flowing directly to minority and women-owned firms. The breakdown of these goals was specific to ensure diverse inclusion:
- African American Owned: 21% ($98.4 million)
- Women-Owned: 11% ($51.3 million)
- Hispanic Owned: 2% ($9.3 million)
- Asian Owned: 0.5% ($2.3 million)
- Native American Owned: 0.5% ($2.3 million)
These weren’t just suggestions. They were formal commitments intended to address historical disparities in who gets to build St. Louis.
The Reality: A $74 Million Gap
Despite these clear benchmarks, the numbers coming out of the project paint a bleak picture. Current projections show that SSM Health is failing to meet these critical thresholds. The gap between the promise and the performance is approximately $74 million.
That is $74 million that should be circulating in minority communities, supporting local families, and growing small businesses. Instead, that capital is going elsewhere.
This shortfall has sparked outrage among community leaders. The NAACP St. Louis City Branch and the MOKAN Construction Contractors Assistance Center have raised alarms, pointing out that this failure undermines the very spirit of the redevelopment plan. In a letter to the St. Louis Development Corporation, the NAACP highlighted a “systemic failure to prioritize minority and women-owned business participation,” calling it a contradiction of the institution’s public claims of advancing social equity.
Why This Matters
Construction projects of this magnitude are rare. When they happen, they function as economic engines. For minority contractors, securing a portion of a half-billion-dollar project can be transformative. It allows businesses to scale up, hire more workers, and build the capacity to compete for even larger projects in the future.
When institutions fail to meet their M/WBE goals:
- Wealth gaps widen: Minority businesses are locked out of wealth-building opportunities.
- Trust erodes: The community loses faith in public-private partnerships and the institutions that claim to serve them.
- Inequity persists: Systemic barriers remain unchallenged, perpetuating a cycle where the same established players win every contract.
Accountability vs. Excuses
SSM Health has responded to these concerns by citing financial stewardship. In correspondence with the NAACP, SSM Health representatives noted that as a mission-driven non-profit, they must balance inclusion goals with affordability. They argued that significant cost increases to meet participation levels would impact healthcare affordability. Furthermore, they suggested that the CBA is a “framework” rather than a binding agreement in the context of their specific project financing.
However, community advocates argue that equity should not be a line item that gets cut when budgets get tight. The NAACP and MOKAN contend that the CBA and city ordinances provide explicit enforcement mechanisms. They emphasize that receiving public support—whether through direct incentives, tax abatements, or the benefits of being part of a redevelopment district—comes with a responsibility to the public.
To accept the “financial stewardship” argument is to accept that minority participation is an optional luxury rather than a fundamental requirement of doing business in a diverse city.
The Call for Transparency
The community is no longer asking for favors; they are demanding compliance. The NAACP has called for:
- Itemized Reporting: Updated utilization numbers by trade and contract value.
- Clear Documentation: Proof of outreach and engagement efforts to find minority contractors.
- Corrective Measures: A concrete plan to fix the shortfall before the project concludes.
This is a critical moment for St. Louis. If a $467 million project in the heart of the city cannot meet its diversity goals, it sets a dangerous precedent for all future development.
What You Can Do
The gap between a promise and a reality is closed by one thing: pressure. The community must stand together to demand transparency.
- Stay Informed: Follow updates from the NAACP and MOKAN regarding this dispute.
- Speak Up: Attend public meetings and press conferences to show your support for equitable development.
- Demand Answers: Ask local officials how they are enforcing the Community Benefits Agreement in Midtown.
We cannot let $74 million in community wealth vanish without a fight. It is time to hold SSM Health to the standards they agreed to and ensure that when St. Louis builds, everyone grows.
Follow The Conversation
For Your Review:
Laura S. Kaiser, Presdient, CEO SSM Health, letter dated 09.09.25
SSM Letter Response dated 10.2.25
Otis Williams, Interim President/CEO St. Louis Development Corporation, letter dated 10.15.25
#EconomicJustice #SSMHealth #CommunityImpact
