Erica Rodriguez, a research partner II, works at the new Laboratory of the Biopathic Clinical Station Company in Pasadena, Ca. (Photo by Sarah Reingwirtz/Medianews Group/Los Angeles Daily News via Getty Images)
Medianews Group via Getty Images
Much left political leadersIncreasingly, along with business entities looking for subsidy and progressive groups, they have expressed various private sector producers for problems that the government has created very often. Instead of constructive solutions, they launch pads. From agriculture and energy producers to drug manufacturers and industrial manufacturers (or any progressive sector give their “big” monument to these days), extremists are trying to shame on innovative, investors and employers and then attempts.
This irresponsible form of political theater is presented on the necessary and critical roles that have capital investment in the current sector of health care. Get the well -published case of the collapse and bankruptcy of healthcare, a hospital system that had fought financially before being acquired by a private shares company and then mainly mismanaged from 2010 to 2020. Rightly, those responsible are responsible.
The scandal has endlessly marked in an effort to tarnish the entire private investment community. However, taking isolated and painful incidents such as this and their use as a pretext for imposing criminal law and regulatory punishments on the rest of private investment community is short -sighted and harmful to human health. It will reduce the basic capital for communities and interested health care bodies that need it most. For every example, such as Steward, there are many others, in which private capital provided a critical life of investment and management expertise to help the systems of health care survive and thrive.
An 2020 analysis found that private capital had invested $ 15 billion in hundreds of emergency care centers, which are very necessary for patients in urban and rural areas affected by hospital closure and lack of primary care providers. Research by the University of Georgetown shows that hospitals supported by private capital have faced increased wages. In addition, doctors and health professionals were able to spend more time with patients due to reduced administrative, legal and regulatory burdens.
Similarly, many medical practices of primary care and specialty have found that private investment funds can help manage back-office functions, allowing them to continue operating independently and provide quality health care to their community. The alternative for many is forced to fold their practices in giant health complexes that place providers, insurers, pharmacies and corporate intermediaries under the same bureaucratic umbrella. In most cases, patients do not like this approach and neither the healthcare professionals.
The private stock industry also plays a vital role in America’s situation as a global hub of medical innovation. On average, it lasts a decade and an investment of about $ 3 billion to create a successful drug. This dangerous effort requires a steady flow of private capital to bring new discoveries.
Private capital can help early stadium companies, as well as university research centers that develop health products, connect to large -scale pharmaceutical companies to get through the regulatory process and bring their products to the market. Between 2011 and 2022, private capital companies invested nearly $ 300 billion in more than 1,800 American life science companies. Continuing this level of support is crucial for maintaining the pipeline of medical advances, which, in the process, creates high -profile jobs.
Americans have unmatched access to cutting -edge treatments. Our innovative economy, which is largely powered by private investment, makes it possible. In particular, a disproportionate number of new patents comes from the US, this process must continue if we want to win the struggle against all, from dementia, cancer, heart disease and diabetes in countless rare diseases. It will also increase access to healthcare to vulnerable rural and urban populations.
Villainizing Private Equity is an easy and irresponsible way for the Left to avoid successful solutions to the important challenges that continue to hit the healthcare system – many of which created by politicians and bad corporate bodies. Unfortunately, this ring approach, a demagogic approach, could lead to bad policy decisions that end up restricting the required investment.
This would really be a sick result for our future health.
