Risky Investments Risk Lives: Stop the Hospital Gamble!

I stand in strong opposition to SB 244 (Crawford), HB 271 (Kalberloh), and a provision in HB 943 (Peters), which endanger the financial stability of Missouri’s hospitals and, by extension, the health and safety of our communities. While framed as a tool for fiscal flexibility, these bills represent a dangerous gamble with public health resources. Allowing hospitals to invest up to 50% of their available funds in volatile markets—mutual funds, bonds, or money markets—undermines the core mission of healthcare institutions: to save lives, not speculate on Wall Street. Hospitals, especially in rural and underserved areas, operate on razor-thin margins. Diverting half their reserves into investments vulnerable to economic downturns could cripple their ability to respond to emergencies, maintain staffing, or upgrade lifesaving equipment. Imagine a hospital forced to slash services or close beds because a market crash wiped out its investments. This is not hypothetical—it is an inevitable consequence of prioritizing financial risk over fiscal responsibility. The bills’ 3% revenue threshold offers a false safeguard. Even minimally tax-supported hospitals could gamble public funds, leaving taxpayers to shoulder the fallout of poor investments. Worse, the remaining 50% of funds would be tied to the State Treasurer’s investment strategies, which may lack transparency or alignment with local healthcare needs. Missouri’s hospitals are not hedge funds; they are community lifelines. Equally alarming is the expansion of county authority to establish new hospitals via bonds in third- and fourth-class counties. While improving healthcare access is vital, this provision risks redundant services, oversaturation, and unsustainable debt in regions already struggling to fund existing facilities. Bond-financed projects could divert resources from critical infrastructure or education, burdening taxpayers without guaranteeing long-term viability. Rural and low-income communities—those most reliant on public hospitals—would bear the brunt of these bills. When investments fail or bond debts mount, it is patients who will face longer waits, reduced care, and shuttered facilities. Healthcare cannot be subject to the whims of the stock market or political ambitions. I urge you to reject SB 244, HB 271, and the provision in HB 943. Missouri’s hospitals deserve policies that prioritize stability, accountability, and equitable care—not reckless financial experiments. Protect patients, not portfolios.