Over the last 20 years, nearly 200 Rural Hospitals have closed nationwide – 100s more are at risk.
By Geannie Morrison
AUSTIN, Texas (Texas Insider Report) — Texas has long been known for supporting innovation. Our positive business environment and skilled workforce make us a beacon for entrepreneurs and businesses. Texas's support for innovation extends to health care, where we have become a leader in life sciences and home to the world's second-largest cancer research and prevention program.
Looking ahead, Texas and the nation must encourage continued innovation in health care. Challenges like rising costs, limited access and workforce shortages are just some of the issues facing our health care system right now. Meeting these challenges will require an openness to new ideas, methods and partners.
Despite the tremendous challenges facing the health care sector, some states and members of Congress are pursuing policies that would shut the door on one group of stakeholders looking to innovate new solutions: private capital investors. From California to Massachusetts to Washington, DC, activists are pushing proposals that would overregulate or curtail the use of private capital in health care. As a former Texas legislator, I would have opposed these efforts if they came across my desk, and I urge our Congressional delegation and state leaders to do the same.
When responsibly deployed, private capital investments can help address many of the challenges we face in health care.
Consider, for example, how one of the biggest problems in health is access and helping providers like hospitals and physicians remain in business or grow, particularly in rural areas. Here, private investment is making a difference.
Private capital has been instrumental in bringing urgent care to more communities. Since 2020, the sector has invested $15 billion in more than 250 new urgent care clinics across the United States. These clinics are bringing health services to communities where the next doctor might be an hour or more drive away.
Private capital investors are also helping to strengthen rural hospitals. Over the last two decades, nearly 200 rural hospitals have closed nationwide. Hundreds more are at risk.
Texas has nearly 100 hospitals backed by private capital. A 2021 study by Georgetown and the University of Indiana suggests private investment may be one thing that helps these facilities survive. According to the authors, private investors have been shown to "improve hospitals' operational efficiency without compromising health care quality."
Private capital investments are also helping physician practices stay open. According to the AMA, physician practices are the "backbone" of rural health for 46 million patients. Unfortunately, many of these practices are at risk as a huge percentage of the physician population approaches retirement age.
When a physician retires, a clinic often has to shut its doors. Private capital can provide another alternative by giving practices the resources they need to transition through a retirement and continue to work with patients.
Workforce shortages, particularly in nursing, represent another pressing challenge facing our health care system. According to some estimates, nearly two-thirds of nurses experience burnout. Here again, private capital is supporting innovative solutions.
Dallas-based company Shiftkey, for example, has created a platform that allows health care organizations to fill nursing and other shifts with licensed professionals who may not want full-time jobs. Shiftkey is helping these professionals find a way to continue serving their communities while also prioritizing freedom and flexibility in their own lives. Shiftkey is backed by private capital investors who are helping the platform develop new technology and serve more facilities.
When arguing against private capital in health care, critics often point to a few high-profile incidents, like Texas-based Steward Health Care's mismanagement of a series of Massachusetts hospitals. While we all can and should denounce any actor, for-profit or non-profit, who puts patients second, we should also recognize there is more to the story of private capital investments in health care than we see in the news.
Responsible private capital investors understand that improving health care is the only path to lasting success. As Texas continues to lead the nation in innovation, our leaders should continue to embrace responsible private capital as a crucial partner in solving our health care challenges.
AUSTIN, Texas (Texas Insider Report) — Texas has long been known for supporting innovation. Our positive business environment and skilled workforce make us a beacon for entrepreneurs and businesses. Texas's support for innovation extends to health care, where we have become a leader in life sciences and home to the world's second-largest cancer research and prevention program.
Looking ahead, Texas and the nation must encourage continued innovation in health care. Challenges like rising costs, limited access and workforce shortages are just some of the issues facing our health care system right now. Meeting these challenges will require an openness to new ideas, methods and partners.
Despite the tremendous challenges facing the health care sector, some states and members of Congress are pursuing policies that would shut the door on one group of stakeholders looking to innovate new solutions: private capital investors. From California to Massachusetts to Washington, DC, activists are pushing proposals that would overregulate or curtail the use of private capital in health care. As a former Texas legislator, I would have opposed these efforts if they came across my desk, and I urge our Congressional delegation and state leaders to do the same.
When responsibly deployed, private capital investments can help address many of the challenges we face in health care.
Consider, for example, how one of the biggest problems in health is access and helping providers like hospitals and physicians remain in business or grow, particularly in rural areas. Here, private investment is making a difference.
Private capital has been instrumental in bringing urgent care to more communities. Since 2020, the sector has invested $15 billion in more than 250 new urgent care clinics across the United States. These clinics are bringing health services to communities where the next doctor might be an hour or more drive away.
Private capital investors are also helping to strengthen rural hospitals. Over the last two decades, nearly 200 rural hospitals have closed nationwide. Hundreds more are at risk.
Texas has nearly 100 hospitals backed by private capital. A 2021 study by Georgetown and the University of Indiana suggests private investment may be one thing that helps these facilities survive. According to the authors, private investors have been shown to "improve hospitals' operational efficiency without compromising health care quality."
Private capital investments are also helping physician practices stay open. According to the AMA, physician practices are the "backbone" of rural health for 46 million patients. Unfortunately, many of these practices are at risk as a huge percentage of the physician population approaches retirement age.
When a physician retires, a clinic often has to shut its doors. Private capital can provide another alternative by giving practices the resources they need to transition through a retirement and continue to work with patients.
Workforce shortages, particularly in nursing, represent another pressing challenge facing our health care system. According to some estimates, nearly two-thirds of nurses experience burnout. Here again, private capital is supporting innovative solutions.
Dallas-based company Shiftkey, for example, has created a platform that allows health care organizations to fill nursing and other shifts with licensed professionals who may not want full-time jobs. Shiftkey is helping these professionals find a way to continue serving their communities while also prioritizing freedom and flexibility in their own lives. Shiftkey is backed by private capital investors who are helping the platform develop new technology and serve more facilities.
When arguing against private capital in health care, critics often point to a few high-profile incidents, like Texas-based Steward Health Care's mismanagement of a series of Massachusetts hospitals. While we all can and should denounce any actor, for-profit or non-profit, who puts patients second, we should also recognize there is more to the story of private capital investments in health care than we see in the news.
Responsible private capital investors understand that improving health care is the only path to lasting success. As Texas continues to lead the nation in innovation, our leaders should continue to embrace responsible private capital as a crucial partner in solving our health care challenges.
Former State Representative Geannie Morrison served 12-terms in the Texas House of Represenatives representing Aransas, Calhoun, DeWitt, Goliad, Refugio, and Victoria Counties. Prior to running for State Representative, she served on the Governor's staff as the Executive Director of the Governor's Commission for Women and the Texas Juvenile Probation Commission, both of which were appointments by then Governor George W. Bush.
