Thursday, December 12, 2024

Corporate Influence in Healthcare: A Decline in Quality and Ethics

Corporate influence in healthcare has led to a decline in the quality of care and a shift in focus from patient well-being to profit generation.

Private equity firms, in particular, have been criticized for their extractive practices.

One example is the case of Steward Health Care, where a private equity firm, Cerberus Capital Management, bought six Catholic hospitals, only to later sell the land and force the hospitals to pay rent.

This financial strain led to understaffing, outdated equipment, and a decline in basic services, ultimately resulting in poorer patient outcomes and even increased mortality rates.

Despite these issues, the firm still profited significantly from their investment.

This focus on profit over patients is not limited to private equity firms.

Health insurers, for example, have been accused of "gamifying" the system to maximize profits.

UnitedHealth, the largest private insurer in the US, has been found to incentivize doctors to diagnose more conditions in patients, even offering bonuses for those who complete the most appointments with seniors enrolled in Medicare Advantage.

This practice leads to overpayments from the government to insurers, diverting taxpayer money away from those who need it.

Even nonprofit health care organizations have been found to engage in practices that prioritize revenue over patient care.

There are examples of nonprofits, like Providence and Allina Health, using debt collectors against low-income patients who were entitled to free care and denying care to patients with unpaid bills.

This shift in focus from patient care to profit has eroded the traditional ethical foundations of medicine.

The professional ethic of placing patients' interests above commercial ones is being replaced by a view of medicine as just another business.

This change is reflected in the language used to describe healthcare, with patients becoming "consumers," doctors "providers," and health care a "commodity."

However, the sources also highlight some positive developments, suggesting that the tide may be turning.

Lawmakers are expressing concern about the practices of Medicare Advantage insurers and are seeking ways to curb excessive patient diagnoses.

There are also legislative efforts to increase scrutiny of private equity in healthcare and to penalize firms engaging in harmful practices.

Additionally, doctors across the country are unionizing at unprecedented rates to advocate for better patient care and resist corporate dominance in healthcare.

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