Hospitals and health systems have long recognized that health outcomes are shaped by more than just medical care.
Economic stability, employment opportunities and access to financial resources all play a crucial role in determining an individual's well-being. In St. Louis, three major anchor institutions — BJC HealthCare, SSM Health and the James S. McDonnell Foundation — are leveraging their financial strength to address economic disparities in the communities they serve.
The organizations have collectively invested nearly $15 million into the St. Louis Community Credit Union's Community Impact Deposit program, helping to expand access to business loans for underrepresented entrepreneurs. The initiative is a key way that health systems can use financial tools beyond traditional healthcare to drive long-term improvements in public health.
The connection between economic and physical health
The connection between financial stability and health is well documented. According to the St. Louis Federal Reserve, Black families, on average, own just 23 cents for every dollar of white family wealth. For small business owners, limited access to capital often hurts their ability to expand, create jobs and build generational wealth.
"Access to affordable loans, especially for Black- and Brown-owned businesses, can be hard to come by," SLCCU President and CEO Kirk Mills said in a Feb. 18 news release shared with Becker's. "The significant deposits we have received from BJC, JSMF and SSM Health are being used to help businesses hire new staff and grow. Our goal is simple: lend responsibly for maximum community impact."
St. Louis Community Credit Union, a Black-owned, minority depository institution and community development financial institution, specializes in offering safe, affordable financial products and services to underserved communities. Since launching the community impact deposit program in 2022, the credit union has attracted more than $30 million in new deposits from private, public and philanthropic entities. These funds have helped issue more than $40 million in business loans, with 90% of those loans benefiting Black-owned businesses.
For BJC and SSM, this initiative aligns with their broader mission of improving public health.
"As the largest employer in St. Louis, BJC is committed to addressing the root causes of health inequities inside and outside our walls," BJC CEO Rich Liekweg said. "Economic well-being and health outcomes are intertwined. We believe investing in the financial health of our community will create opportunities and progress that will be felt for generations to come."
SSM President and CEO Laura Kaiser, echoed this sentiment: "Providing high-quality healthcare services is crucial. But people also need access to nutritious food, safe housing, reliable transportation, and strong, stable employment opportunities in order to thrive. Through this partnership, we are investing in the economic health of our community so that everyone has the opportunity to lead their healthiest life."
Turning dollars into direct community impact
The real impact of this initiative can be seen in businesses like Freddie Lee's Gourmet Sauces, a St. Louis-based food brand that struggled to expand due to limited access to capital.
"We were able to breathe a little easier and not have those high-interest loans hanging over our heads,” said Deborah James, co-owner of the company. "This loan allowed us to grow, hire more people, and take our business to the next level. It helped us believe in the banking system again."
For St. Louis health leaders, stories like these reinforce the importance of thinking beyond traditional healthcare models and considering how financial investments can improve community well-being.
Health systems as economic anchors
The move by BJC and SSM reflects a growing trend among anchor institutions — large, place-based organizations such as hospitals and universities that are deeply embedded in their local economies. Hospitals are increasingly recognizing that where they store and invest their money can be a powerful tool for economic change.
"We know that community health requires all of us — health systems, nonprofit partners and public health departments — to work together," Christopher Nolan, director of community benefit and anchor initiatives at BJC, told Becker's.
Beyond the credit union initiative, BJC and SSM have long collaborated on various regional efforts. They are active in Greater St. Louis Inc., an economic development coalition focused on revitalizing historically disinvested neighborhoods. They also work jointly on community health needs assessments to ensure a coordinated approach to addressing health disparities.
"While we may be competitors in some areas, initiatives like this unite us," Mr. Nolan said. "In the end, our patients, communities and even our employees — who also live in these communities — benefit."
Karen Bradshaw, regional director of community health at SSM, emphasized that this work goes beyond charitable contributions.
"This isn't about donations; it's about making strategic, high-impact investments," Ms. Bradshaw told Becker's. "Hospitals and health systems looking to get started in impact investing should begin with a landscape scan to identify financial partners like credit unions or CDFIs that are deeply embedded in their communities."
A call to action for health systems
BJC, SSM and the James S. McDonnell Foundation hope their collaboration will inspire other anchor institutions to follow suit.
"At the core of this initiative is the idea of impact banking. Where we choose to deposit our funds matters," Mr. Nolan said. "We encourage other anchor institutions — both in St. Louis and beyond — to consider financial partners that serve communities historically lacking investment. These deposits have a direct impact, and we'd love to see this model expand."
For hospitals looking to take the first step into impact investing, a community impact deposit or partnership with a CDFI can be a tangible entry point.
"We see this as just the beginning — what we hope will snowball into larger efforts over time," Ms. Bradshaw said. "For organizations exploring this path, even the decision of where to hold funds can create leverage and new opportunities for community investment. Our experience with the credit union made this first step a smooth and valuable one."
As healthcare continues to evolve beyond the walls of hospitals and clinics, initiatives like these demonstrate how financial investments can be a critical tool for improving public health.
"We're seeing innovative programs emerge in this space — whether in housing, refinancing or alternatives to payday lending. There's a real opportunity to rethink how we do business and leverage our resources to drive change," Mr. Nolan said. "At the end of the day, we are large nonprofit health systems with day-to-day operations to manage. But our leadership is committed to our mission of improving health, and initiatives like this allow us to integrate that mission into how we do business."