How Private Equity Is Ruining American Health Care

How Private Equity Is Ruining American Health Care

 

Morganroth’s defense of pandemic Botox might seem odd, but it made perfect sense within the logic of the U.S. health-care system, which has seen Wall Street investors invade its every corner, engineering medical practices and hospitals to maximize profits as if they were little different from grocery stores.

Not long after Gavin Newsom, the governor of California, ordered the state’s 40 million residents to stay home to stop the spread of the new coronavirus, Dr. Greg Morganroth called his team of doctors and said their dermatology group was staying open.

Morganroth is chief executive officer of the California Skin Institute, which he founded in 2007 as a single office in Mountain View. He’s since expanded to more than 40 locations using a financing strategy that’s become exceedingly common in American health care: private equity. In this case, he took out a loan from Goldman Sachs Group Inc. that could eventually convert to an equity stake. CSI is now the largest dermatology chain in California.

But the Covid-19 pandemic put Morganroth in a precarious position. Most medical procedures were characterized as nonessential by government officials and practitioners. Doctors were closing offices, and patients were staying away to limit their potential exposure to the virus.

The U.S. doesn’t have a “HEALTH CARE SYSTEM” we only have a “MARKETPLACE” – the US citizen spends top dollar for everything while the rest of the world actually has a “system” that has negotiated and their public spends very little.

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