$74M Shortfall: SSM Health Under Fire in St. Louis over Cardinal Glennon Project
Meta Title: SSM Health Faces Backlash Over Cardinal Glennon Goals
Meta Description: SSM Health faces criticism for a $74M shortfall in M/WBE goals for the Cardinal Glennon project. Learn why the community demands accountability.
The new SSM Cardinal Glennon Children’s Hospital development faces intense scrutiny. This massive construction project in St. Louis has sparked a major controversy regarding SSM Health Accountability. The dispute centers on a $467 million project and a failure to meet specific goals. Specifically, the healthcare provider allegedly missed participation targets for Minority and Women-Owned Business Enterprises (M/WBE). Consequently, this shortfall creates a projected $74 million gap. Now, community leaders demand answers and immediate action.
Press Conference to Address Compliance Failures
The NAACP and the MOKAN Construction Contractors Assistance Center are taking action. They organized a press conference to bring public attention to this critical issue. Their goal is to highlight compliance failures by SSM Health and its partners. Furthermore, they want to enforce the binding Community Benefits Agreement (CBA) that governs the Cardinal Glennon hospital project.
Event Details:
- Date: Wednesday, December 17, 2025
- Time: 10:00 AM (Central Time)
- Location: St. Louis City NAACP Offices – 4811 Delmar Boulevard – St. Louis, MO 63108
This event serves as a vital platform. Stakeholders will use it to voice their concerns. Additionally, they will demand that the St. Louis-based healthcare system honors its commitments to economic inclusion.
The Financials: A Breakdown of the M/WBE Goals
The core of the dispute is financial. A significant gap exists between the promised M/WBE participation and current projections for the Cardinal Glennon hospital project. The Community Benefits Agreement established clear targets. These targets are binding and require the inclusion of minority and women-owned firms in the massive construction effort.
Key Facts of the Agreement
- Total Project Budget: $467 million
- Overall CBA M/WBE Goal: 35% ($163 million)
The agreement breaks down this 35% goal further. It ensures equitable distribution among various groups:
- African American-Owned: 21% ($98.4M)
- Women-Owned: 11% ($51.3M)
- Hispanic-Owned: 2% ($9.3M)
- Asian-Owned: 0.5% ($2.3M)
- Native American-Owned: 0.5% ($2.3M)
Despite these clear figures, SSM Health’s current projections fall short. In fact, they indicate a failure to meet these targets by a staggering $74 million. This shortfall represents a massive lost opportunity for M/WBEs in the St. Louis region.
Background: A Promise of Economic Inclusion
This issue goes beyond mere numbers. It is about upholding a promise made to the community regarding the Cardinal Glennon hospital project. The Midtown Redevelopment Plan, codified under Ordinance 70428, fosters economic inclusion. Specifically, it intends to advance minority business participation.
The Community Benefits Agreement turned that intention into reality. SSM Health, Saint Louis University, the NAACP, and other stakeholders signed the CBA. This document formalized these goals as legally binding obligations. Stakeholders viewed it as a landmark commitment. It ensured that major development projects would directly benefit their local communities. However, the current failure to adhere to this agreement feels like a betrayal. Many view it as a contradiction of the SSM Medical Group‘s stated values of promoting social equity.
The Impact of Non-Compliance on St. Louis
Failing to meet these M/WBE goals has profound consequences. For minority and women-owned firms, the impact is severe. This gap means lost revenue and missed growth opportunities. Furthermore, it creates a barrier to creating jobs within their communities.
On a broader scale, it perpetuates systemic inequities. These inequities historically limit access to large-scale contracts for these businesses. The agreement was designed as a tool for economic empowerment. Therefore, its failure undermines efforts to build a more inclusive local economy in St. Louis. It also calls into question the commitment of major institutions like SSM Health. Are they true partners in community development? The current situation casts doubt on the promises made for Cardinal Glennon.
A Call for Accountability and Action
The upcoming press conference issues a clear call to action. Community leaders urge all stakeholders to step up. This includes city officials and the public. Together, they must hold SSM Health accountable for its contractual obligations.
Addressing this compliance gap at Cardinal Glennon requires more than just acknowledgment. It demands a transparent and immediate plan from SSM Health to rectify the shortfall and ensure all M/WBE participation goals are met for the Cardinal Glennon hospital project. This could involve re-evaluating subcontracting plans, unbundling large contracts to create smaller opportunities, and providing greater support and outreach to M/WBE firms. The goal is to ensure that the promises of economic opportunity embedded in the Community Benefits Agreement for Cardinal Glennon are fully realized.
Read more on The St. Louis NAACP’s advocacy work in St. Louis, Missouri.
To learn more about the work of organizations supporting minority contractors, consider visiting the website for the National Association of Minority Contractors (NAMC).
#SSMHealth #CardinalGlennon #EconomicInclusion
