Children’s Mercy Hospital, the region’s only independent freestanding pediatric hospital, announced on November 9 that it will eliminate 115 jobs and move 473 billing and scheduling positions to Ohio‑based Ensemble Health Partners. The cuts, representing just over 1% of the workforce, target primarily non‑clinical administrative, leadership and support roles, according to a statement from the hospital cited by The Beacon News.
The hospital also disclosed that its internal billing department at the Hospital Hill campus will close on Feb. 6, with the transition to the external contractor beginning then. The move follows a broader effort to manage rising operating costs and what the hospital describes as insufficient insurance reimbursement rates.
In October, Children’s Mercy announced that starting next year it would no longer be included in any insurance plan sold through the Affordable Care Act marketplace. The decision, which sparked viral conversations on social media, could leave roughly 400 families without in‑network access to the hospital or its affiliated physician practices. Hospital officials blamed insurers for refusing to cover the specialized pediatric care the facility provides, while carriers argued the hospital’s prices were too high.
Financially, the hospital appears stable. S&P Global Ratings reported that fiscal year 2025 generated $418.5 million in excess revenue, up $134.2 million from the prior year, with operating revenues of $2.1 billion, a 7% increase. Market share for pediatric services rose to 88% in 2025 from 83% two years earlier, and the hospital’s bond rating was upgraded to AA in May.
However, the hospital noted rising expenses. For the nine‑month period ending March 31, excess of expenses fell to $219.6 million, down $42.8 million from the same period in 2025. Operating costs rose 14% versus an 11% revenue increase. Salary, wage and benefit costs jumped 10.9%, supplies and pharmaceuticals rose 11.3%, and purchased services—including consulting for a new electronic medical record system—climbed 29.5%.
Children’s Mercy recently invested $140 million to transition from Oracle (formerly Cerner) to Epic electronic medical records, a change that went live in March. Additional spending includes a $10.3 million joint operating agreement with Mercy Hospital in Springfield.
What’s next: The hospital’s internal billing department will close on Feb. 6, completing the shift of 473 billing and scheduling jobs to Ensemble Health Partners. Families affected by the ACA marketplace exclusion are urged to review their insurance options ahead of the 2027 enrollment period.
Sources: thebeaconnews.org
