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Publicly available medical companies analysis has seen shareholder payments (placement and stock buybacks) more than tripled since 2001, focusing on the economic priorities of the health sector.
A research letter co-authored by Yale University researchers and published in Jama Internal Medicine earlier this month shows that it is worth almost every net profit, rather than reinvesting major healthcare companies into affordable prices, research, or patient care. found that it was allocated to shareholders.
The study, led by Victor Roy, an assistant professor at the University of Pennsylvania, examined data from publicly available S&P 500 healthcare companies between 2001 and 2022.
The survey shows that shareholder payments increased by 315%, up from $54 billion in 2001 to $170.2 billion in 2022, with only 19 of the 92 companies accounting for more than 80% of the total. I did.
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Additionally, S&P 500 healthcare companies allocated an average of 95% of their net profit to shareholders.
“Shareholder payments have significant implications for stakeholders, especially patients,” Roy wrote in a statement.
This study highlights the growing role of for-profit companies in the health sector and the economic impact of these trends.
“This is a 'following money' study,” Cary Gross, a medical professor at Yale School of Medicine, said in a statement. “There was a great concern about the 'privatization' of the healthcare system as commercial companies play a bigger and bigger role. ”
Why is this important?
The findings show how financial decisions made by healthcare giants will affect patient costs, particularly since 70% of medical expenses in the US are publicly funded through taxes and government programs. I'm asking questions about.
“An increase in capital allocation to shareholders of publicly available companies may be linked to rising prices and may not be reinvested in improved access, delivery or research and development,” Roy said. The statement said.
Bigger trends
Meanwhile, hospitals and healthcare providers are enduring rising costs and disruptions in their supply chain as uncertainties continue over new tariffs on China's imports.
In a Black Book Survey of 160 health professionals, including supply chain executives and hospital finance leaders, 82% of respondents face at least 15% of hospital costs over the next six months due to increased import costs. We expect it to increase.
Industry groups, including the Healthcare Distribution Alliance (HDA), have warned that tariffs on drugs and medical products could exacerbate drug shortages and increase costs for hospitals, insurance companies and patients.
