Private capital has invested nearly $1 trillion in U.S. health care since 2006. These investments have funded critical research into devastating diseases like Parkinson’s and Alzheimer’s and revolutionized medical record-keeping.
Despite the clear benefits private capital brings to health care, some state and federal policymakers are pushing to restrict how private capital can be deployed in the health care sector.
As a pharmacist and retiring state representative — the only pharmacist to serve in North Carolina’s legislature during my tenure — I believe such restrictions would be a mistake. Not only does private capital fund crucial medical innovation and research into new treatments, but it’s also expanding access to quality care in our state.
Across all sectors of the economy, North Carolina is among the top 10 recipients of private capital, with 600 businesses backed by private investors. Many of these recipients are in health care and making a difference for patients today.
While dozens of privately backed North Carolina health care entities are worth highlighting, three recent success stories in the news illustrate why funding from private capital is essential.
The first success is Tryon Medical Partners in Charlotte. This practice demonstrates the power of private investment in physician care. The practice serves 200,000 patients in 10 clinics throughout the Charlotte area.
In October, the practice announced that it was teaming with private investors to access new capital that would be used to run the business side of its practice and to provide resources to expand services.
Private capital will also help Tryon compete in a market increasingly controlled by a few big actors, including the third-largest tax-exempt hospital system in the U.S., Advocate Health. For Tyron and many other practices nationwide, consolidation presents a big problem. Private capital helps practices remain independent and compete with the most prominent industry players.
Another success story is Charlotte Radiology, which was recently featured at an event in Washington, D.C. Charlotte Radiology shows how private investment can transform and expand access to specialty care.
This practice received funding from private capital in 2018. New resources have helped it grow from 30 centers in Charlotte to more than 175 imaging centers in 13 states. In addition to helping the practice reach more patients, private capital enables it to improve care by adding tools like artificial intelligence to its arsenal.
Some critics argue for restrictions on private capital in health care, suggesting that private investments lead to diminished patient care. Charlotte Radiology tells a different story. The company reports that its patient satisfaction rates approach 98%.
The final example is American Family Care, an urgent care leader recently expanding into Lee County. American Family Care started with a single location in 1982. Access to private capital has since helped it expand to more than 350 locations nationwide, including more than 10 in the Tarheel State.
Urgent care is an area where private capital is proving its worth. However, accessing health care is extremely difficult in too many rural areas. For example, 11 rural hospitals in North Carolina have either shut down or stopped providing inpatient care since 2005, and many more are at risk.
Urgent care clinics can help fill in the gaps in rural communities, and private capital can help make sure the resources exist to open more centers where patients need them.
Tryon Medical Partners, Charlotte Radiology and American Family Care demonstrate why responsible private investment must remain part of our health care system. It enables physician independence, drives technological innovation and maintains health care access in underserved areas.
In North Carolina, we are fortunate to have leaders who understand the vital role of private capital in health care. Sen. Thom Tillis, for example, has correctly characterized the funding as a “very important part of the ecosystem.”
As discussions about private investment in health care continue and perhaps even reach the halls of Congress, we will need him and others to share stories from North Carolina and stand up for private capital’s positive role in our healthcare system.
Rep. Wayne Sasser is chairman of the North Carolina House Health Committee and represents Montgomery and Stanly counties.