The Commonfund Institute, a financial research organization based in Wilton, Conn., looked at the assets and investment data of 86 non-profit healthcare organizations, including hospitals and health systems. Researchers found that those organizations’ share of assets allocated to alternative investments — such as real estate and hedge funds — have increased heavily since 2009.
“The share of healthcare organizations’ assets allocated to alternative investments rose from 15 percent in 2009 to 21 percent last year,” said William Jarvis, managing director of the Commonfund Institute, in a North Jersey report. “That’s a huge shift in such a short period of time.”
Alternative investments are usually considered to be riskier bets, but they usually lead to better returns. However, the report also found that the riskier investments did not lead to significantly better portfolios. Hospitals and health systems reported 0 percent in investment returns in 2011, compared with 11 percent in 2010 and 19 percent in 2009.
Mr. Jarvis said in the report this could be due to the sluggish overall markets, which hammered most institutions this past year.
More Articles on Hospital Investments:
Standalone Children’s Hospital Medians vs. General Acute-Care: 50 Statistics
Hospital CFO Panel: How Are You Approaching Your Fiscal Strategy Right Now?
Financing Options for Large Hospitals and Multi-Hospital Systems
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
