The Dramatic Rise in the Stock Market Over the Last 10 Years Has Caused Institutional Investors Like Pension Funds to Re-balance to Private Equity

By Eric Bricker MD
A Typical Pension Fund Portfolio Will Be 51% Bonds, 28% Equities, 6% Real Estate, 5% Private Equity, 4% Other and 6% Cash. As a Result of Rebalancing Money Out of Skyrocketing Equities, Private Equity Funding Has Doubled to Over $1.2 Trillion in the Last 10 Years.
Specifically in Healthcare, Private Equity Investment in Providers (i.e. Physician Groups, Surgery Centers, Imaging Centers, etc.) Doubled to $30 Billion in Just ONE YEAR. The Private Equity Investment on the Payor Side of Healthcare PALES in Comparison at Only $1 Billion. The Majority of These Private Equity Investments Plan on Making Money By INCREASING Healthcare Costs in a Fee-for-Service Payment Environment.
Healthcare Costs Don’t Rise By Accident. They Rise Because Specific People Make Specific Plans to Increase Costs to Earn a Return on Their Investment.
Sources: https://www.ssga.com/investment-topic…, https://www.barrons.com/articles/reba…, https://www.privateequityinternationa…

PODCAST LINK: https://www.youtube.com/watch?v=X3hpyeQaKDk
ASSESSMENT: Your thoughts are appreciated.
Diversification: https://medicalexecutivepost.com/2014/11/12/the-negative-short-term-implications-of-diversification/
Hospital Endowment Fund: https://medicalexecutivepost.com/2015/01/08/on-hospital-endowment-fund-management/

SECOND OPINIONS: https://medicalexecutivepost.com/schedule-a-consultation/
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Filed under: Experts Invited, Health Economics, Healthcare Finance, Investing, Portfolio Management, Videos | Tagged: Eric Bricker MD, Healthcare Private Equity, Pension Funds, Stock Market Impact on Health Care | 3 Comments »













