Twelve of the country’s largest not-for-profit health systems ended 2018 with $3.7 billion in collective investment losses last year in the stock market downturn that erupted out of political and economic fears.
But as is typically the case, none of the massive systems indicated plans to withdraw from the equities market whatsoever. Their investment strategies match their long-term goals and entail staying the course regardless of what happens during an unsavory quarter.
“You don’t sell when the market’s going down,” said Steven Shill, partner and national leader of the BDO Center for Healthcare Excellence & Innovation. “You hold, particularly if you have a specific objective in mind, which many of them do have.”
Among the country’s largest not-for-profit health systems by revenue—excluding those that haven’t yet filed their year-end 2018 financials—Kaiser Permanente took the biggest hit. The Oakland, Calif.-based system posted a $1.2 billion loss alone—a nearly $5 billion swing from its 2017 gain. And the stock market has already regained much of its losses so far in 2019.