Good morning. As U.S. health care organizations face increasing cost pressures, some CFOs have been tapping into investment reserves, instead of going to the capital debt market. A survey of health care organizations conducted by consulting firm Mercer found that liquidity concerns led nearly 40% of health care organizations to draw from investment portfolio reserves to support operations, surpassing debt issuance (21%) in 2023. The use of investment reserves is expected to continue through 2025, according to Mercer.
To find out more, I sat down with Chris Cozzoni, author of the report and partner and U.S. health care investment co-leader at Mercer.
