The Financialization of “Non-Profit” Health Systems

August 23, 2021

Health Systems With Largest Private Equity Investments.
Modern Healthcare
May 3, 2021

Largest Health System Investors in Hedge Funds
Modern Healthcare
May 3, 2021

Both charts are behind a paywall. From the Charts:

Health System	Private Equity Investments	Hedge Fund Investments
Kaiser Health Plan	$10.180 bil.	$2.820 bil.
Mayo Clinic	$3.869 bil.	$3.421 bil.
Cleveland Clinic	$2.061 bil.	$3.335 bil.
Mass General Brigham	$1.140 bil.	NA
Indiana U. Health	$0.802 bil.	$1.218 bil.
Sutter	$0.414 bil.	$1.132 bil.

Comment by: David Himmelstein and Steffie Woolhandler

We and others have noted the worrisome commercialization of health care, and particularly private equity firm purchases of physician practices, hospitals, and nursing homes. 

But commercialization is also reflected in “non profit” health systems’ increasing focus on financial gain. Profits on patient care undoubtedly account for the vast majority of the surpluses they invest, as well as their executives’ multimillion dollar pay packages. This thirst for profit distorts priorities: mental health, primary care, and care for the poor are money losers, while delivering high tech cardiac and orthopedic procedures to affluent patients is the road to riches.

All payments for patients’ care should go for care, not to augmenting institutional wealth and power.