Originally published in the Kansas City Business Journal, March 9, 2017

A rash of proposals for scaled-down emergency rooms went before cities for approval in the suburbs of Kansas City. At first, the operator remained a mystery, but I later confirmed that it was Saint Luke’s Health System, one of the main hospital systems in town.

Though the hospitals provided more extensive services than a freestanding emergency room, they were still limited in the types of cases they could handle. They were announced as a quick, convenient way for people in the community to receive emergency services. But despite their small size, they’re still billed the same as any emergency room.

Why were so many hospital systems turning to this method? For one, microhospitals are cheaper to build, at around $7 million to $30 million each. They also serve as a quick way for health systems to build a presence in growing neighborhoods, giving them a strategic advantage over their competitors.