Worcester Business Journal

8 Worcester Business Journal | March 24, 2025 | wbjournal.com Central Mass. business leaders are standing by their DEI initiatives amid federal funding threats BY MICA KANNER-MASCOLO WBJ Staff Writer P resident Donald Trump had barely stepped back into the Oval Office when he signed a number of executive orders in January, demanding organiza- tions receiving federal funding terminate their diversity, equity, and inclusion initiatives or have their funds shut off. e administration has deployed a campaign categorizing DEI efforts as il- legal and immoral discrimination, assert- ing that eliminating them will bring back a merit-based hiring system supposedly in place before their implementation. "e loudest voices right now are working to disparage the work of in- clusion and to sort of recreate this false narrative that merit is what ruled before," said Valerie Zolezzi-Wyndham, founder of equity-based consulting firm Promot- ing Good in Worcester. National brands such as Target, Morgan Stanley, and McDonald's ditched their DEI efforts. Others, such as Apple, Costco Wholesale, and Lowe's, have dou- bled-down on DEI, despite the threats. In Central Massachusetts, a group of top business executives are taking a public stance, sticking with DEI while at the risk of losing federal revenue. e leaders of Edward M. Kennedy Community Health Center, Spectrum Health Systems, and Fontaine Bros., all of Worcester, collectively believe the benefits of DEI initiatives are reaped on personal and companywide levels. With their equity initiatives enhancing em- ployee experience, fostering innovation, and promoting longevity, these business leaders are ready to fight for what makes up the fabric of their organizations. "We're not going to change the core of who we are as people or as a health cen- ter to respond to the whims of someone who is unstable," said Steve Kerrigan, president and CEO of Edward M. Ken- nedy Community Health Center. Risking millions is year marks 60 years since the country's first community health center was founded as part of a movement based in providing equitable care, regardless of a person's circum- stances in life, and one that honors the diverse nature of us as people, Kerrigan said. "It's like asking us to walk away from our right arm," he said. "Try- ing to get DEI out of our organiza- tion would be like trying to cut the fat out of a marbleized steak, or remove all the veins from a human body." Kerrigan isn't concerned about possible federal funding cuts affecting PHOTO | EDD COTE the center's DEI director position, as the nonprofit does not use federal funds to pay its salary. On the other hand, Kenne- dy Community Health is at risk of losing money if Trump cuts Medicaid funding to organizations that use the words diversity, equity, and inclusion. "Bullies go aer things they're threat- ened by," said Kerrigan. "If you're going to feel threatened by a place that provides care regardless of your ability to pay, in an inclusive manner, then I don't have much space for you." Medicaid accounts for about 35% to 40% of the health center's revenue with about 32% of its clients using Medicaid as their insurer. e center has about $56 million in annual revenue, according to nonprofit data provider Guidestar. Until executive orders are put into place, Kennedy Community Health is operating as normal while advocating with its supporters in Congress to push back against potential cuts. "Right now, we're telling our stories to anybody who listens about what the impact of Medicaid cuts or elimination would be," said Kerrigan. Spectrum Health is at risk of federal cuts as it sticks to its DEI principles, said President & CEO Kurt Isaacson. Spectrum has a DEI committee that over the past few years has combed through its human resources and client handbooks, electronic medical records, and clinical written plans for clients to determine where the organization could improve. It has performed market studies and focus groups on its equity practices and has implemented implicit bias and interrupting racism training. Spectrum isn't willing to back away from these efforts, Isaacson said. Not only do DEI commitments boost employee morale, Isaacson said research shows receiving health care by someone who looks like you and shares your lived experiences leads to improved outcomes. ere is no shortage of literature that backs up this claim. For instance, a 2020 study by researchers at Penn Medicine, a Pennsylvania-based academic medical center, analyzed 117,589 patient surveys and found patients who shared the same racial or ethnic background as their physicians were more likely to give the highest possible patient rating. Spectrum has the reserves to sustain itself through the possible Medicaid cuts, said Isaacson. e nonprofit has ex- panded its programming and increased its revenue, keeping it secure for several years into the future. Spectrum Health generates about $130 million in annual revenue, according to Guidestar. "We're grateful to be in a position that we can afford to do that," he said. Even still, the continuous changes to what is being communicated from Washington, D.C. is not an easy space for Spectrum to navigate. "People are frustrated because there's one direction one day and another direc- tion the next. And [federal government United force Steve Kerrigan, CEO & president of Edward M. Kennedy Community Health Center Fontaine Bros. CEO David Fontaine (center), Spectrum Health Systems CEO Kurt Isaacson (left of Fontaine), and Pro- moting Good CEO Valerie Zolezzi-Wynd- ham (right of Fontaine) stand with their employees and those from Edward M. Kennedy Community Health Center, unit- ed in their support of DEI initiatives.

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