WHY PROFIT-DRIVEN HEALTHCARE IS DESTINED TO FAIL

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Healthcare has evolved into a complex, high-stakes industry where, too often, profit seems to take precedence over people. It's like trying to build a high-rise by starting with the penthouse —when the real magic happens in the lobby, on the foundational floors. Those lower levels are where stability and long-term success are forged. The same is true in healthcare: the foundations of a truly successful healthcare system are built on patient care, compassion and relationships. Without that, the entire structure becomes unstable.

When we prioritize profit over people, especially in an industry where the end user is a human being, we create a model that is transactional and short-sighted. Last week’s transition of former CEO of CVS, Karen S. Lynch, is evidence of this: leaders feel pressured to step down for failing to meet short-term revenue goals, when the long-term mission of healthcare should always be to help people live healthier lives. This is a tragedy of short-sightedness that’s breaking the healthcare system.

Healthcare Needs A Reset

For healthcare to truly improve, it needs to focus on the foundational principles of care and compassion. We need to stop focusing on the penthouse—the short-term profits—and start investing in the lobby: the patient relationships, the primary care systems, and the preventative measures that are the real bedrock of healthcare. When healthcare becomes relational, it becomes truly human-centered. That’s when we’ll see real change—when clinicians can focus on treating the person, not just the symptoms, and when long-term health is prioritized over short-term profits.

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Statistics:

• The U.S. spends nearly twice as much on healthcare as other developed countries but ranks last in health outcomes among 11 high-income nations (Commonwealth Fund).
• 1 in 4 Americans struggle to afford their healthcare bills (Kaiser Family Foundation).
• Medical debt is the leading cause of bankruptcy in the U.S., impacting 530,000 families annually (American Journal of Public Health).
• Countries with strong primary care systems see better health outcomes and lower costs (Commonwealth Fund).

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The Cost of Transactional Healthcare

Transactional actions will always produce transactional results. When healthcare is reduced to an exchange of services for money, the human element is lost, and the outcomes reflect that. According to a 2020 report by Gallup, the U.S. healthcare system is the most expensive in the world, yet it ranks last among 11 high-income countries in terms of health outcomes, access, and equity. The profit-driven focus has created a system where money is poured into the upper levels of the “high-rise”—executive salaries, advertising, and shareholder returns—while the foundation, the actual patient care, suffers.

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A 2022 Kaiser Family Foundation (KFF) study found that one in four Americans struggle to afford their healthcare bills, despite the country spending more on healthcare than any other nation. This shows the misalignment between financial priorities and patient needs, and it’s clear that a transactional model does not work for healthcare.

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Healthcare Must Be Relational, Not Transactional

Healthcare, at its core, is about relationships—between clinicians and patients, between care teams and communities, and between healthcare providers and the families they serve. This relational model of care fosters trust, accountability, and long-term wellness. Yet, in today’s system, relationships are often sacrificed in the name of efficiency and profit. This not only erodes the quality of care but diminishes patient satisfaction and outcomes.

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A relational model prioritizes:

• Personalized Care: Where clinicians take the time to understand each patient’s unique health needs, lifestyle, and challenges.
• Continuity of Care: Ensuring that patients see the same healthcare providers over time, allowing for better, more informed decision-making and care planning.
• Holistic Health: Recognizing that healthcare is not just about treating symptoms but about addressing mental, emotional, and social factors that affect a person’s overall well-being.

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The Commonwealth Fund has reported that countries with strong primary care systems—where relationships and long-term health are prioritized—see better health outcomes and lower overall costs. Healthcare, then, must be built on these relationships, not just transactions.

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Disruptors in the industry are already standing up, challenging the status quo, and showing that it is possible to create a healthcare system that is both financially sustainable and patient-centered. However, these changes won’t happen overnight. Success will come, but it will take time, dedication, and a commitment to long-term vision over short-term gains.

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Leaders in healthcare must be willing to make investments in primary care, mental health, and preventative services, even if those investments don’t yield immediate financial returns. It’s a long game, but one that will ultimately improve patient outcomes, reduce costs, and create a more sustainable system.

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The Human Cost of Profit-Driven Healthcare

The sad reality is that the current model of healthcare isn’t just failing patients—it’s also causing harm. Studies show that medical debt is the number one cause of bankruptcy in the United States, with nearly 530,000 American families declaring bankruptcy each year due to overwhelming medical expenses. This is not just a financial issue, it’s a human one. When people are forced to choose between paying their medical bills and feeding their families, it’s clear that the system is not working.

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Healthcare will never improve if profit is put over people. It’s time for a reset—one that shifts the focus from transactional actions to relational care, from short-term gains to long-term health outcomes. Disruptors are rising, but meaningful, sustainable change will take time. Healthcare leaders must be willing to invest in the foundation, not just the penthouse, if we are ever to see a healthcare system that truly works for everyone.