Many hospitals are facing a crisis. It could cost employers.

As mounting costs put pressure on hospital balance sheets, some of that financial burden could make its way downstream in the form of higher premiums for employers and individuals. Hospitals saw costs — especially those related to labor — increase rapidly in the aftermath of the Covid-19 pandemic, according to a report from the American Hospital Association. Medicare and Medicaid reimbursement rates, meanwhile, have not kept pace with those cost increases, and hospitals are facing additional…