Nationally, and in Oregon, there is an ongoing debate about the role of private capital investment in our healthcare system. Oregon, in particular, has had challenges with poorly managed private capital-backed physician groups, which have raised concerns about oversight. There have even been instances where financial interests overrode patient care, creating distrust in private investment.
However, not all private investment is created equal. Responsible investment makes it easier for healthcare providers to access the capital they need to upgrade technologies, facilities, and equipment. To achieve the best outcomes for patients, decisionmakers should focus on ensuring that investment aligns with strong ethical and operational standards, something that the organization I lead – the Association for Responsible Healthcare Investment (ARHI) – prioritizes. Done right, these investments can work wonders in reducing health disparities and increasing access to care.
Take urgent care as an example. These clinics offer patients timely access to care when they need it most. Thanks to private investments, American Family Care – a leading provider of urgent care services – has been able to expand its reach, opening new clinics in communities across the country and providing critical services like digital X-rays, lab testing, and more. This kind of growth directly improves patient well-being by increasing access to care, particularly in rural and underserved areas.
Private investment also plays a crucial role in helping doctors manage the administrative and compliance burdens associated with running a healthcare practice. Many independent doctors choose to partner with management services organizations (MSOs), which provide the tools and resources needed to streamline operations, allowing physicians to spend more time treating patients. This support helps prevent burnout at a time when Oregon is already grappling with a physician shortage. In fact, experts estimate that Oregon will need a 40 percent increase in primary care providers over the next decade just to keep up with demand.
Beyond improving healthcare quality and access, private investment also helps alleviate financial pressure on our nation’s healthcare system. This, in turn, prevents rising costs for taxpayers and strengthens the long-term viability of programs like Medicare without sacrificing patient care. A recent study found that Medicare expenditures decrease by nearly $1,000 per beneficiary in practices backed by private investment. In contrast, expenditures tend to increase under other physician practice affiliation models, such as those associated with large insurers and corporate entities, contributing to overall healthcare spending growth.
Our Association has put forth a clear set of principles that prioritize patient well-being, transparency, ethical business practices, and physician independence. These principles ensure that investments support – not undermine – quality care. From the expansion of telemedicine during the pandemic to the development of innovative treatment models, responsible private investment has driven much of the progress in Oregon by financing new equipment and groundbreaking research. When done responsibly, these investments support providers while respecting their autonomy in patient care decisions.
Oregon’s leaders should welcome responsible investors who are committed to strengthening our healthcare infrastructure. Smart policies should distinguish between ethical investment that expands care and bad actors who exploit the system. Patients deserve access to care and the protection of the doctor-patient relationship. ARHI stands ready to help foster this conversation and welcomes the opportunity to engage with lawmakers on achieving the goals of prioritizing patient care and supporting ongoing investment. Together, we can support the innovation needed to improve access, increase quality, and reduce costs for patients, families, and communities in Oregon and across the country.
