As you know, one of three priority target areas we have here at NAMHP is addressing the impact of venture capital (VC) on the mental health industry. You can read about all 3 of our target areas in our webpage: https://www.namhp.org/advocacy-and-lobbying
With that said, the NAMHP Board would like to clarify that we are not against VC funding in general. Part of our mission is to lobby for a change in the governmental structure and healthcare policies around how VC investors would be allowed to fund healthcare companies. We will be lobbying for regulations, policies and legislation to prevent VC investors from dictating business models based on tech companies that have a "flipping" mindset for higher multiplications in Mergers and Acquisitions (M&A).
NAMHP acknowledges that we need funding to develop healthcare businesses. We endorse collaboration with VC companies if they follow a healthy business model that is in the best interest of our clients and professional providers, not only VC-owned investors and executives.
VC funding does not mean that a company is unethical or the companies that are backed by VC need to be targeted. VC funds can be used ethically if the structure of the company is client-centered and clinician-supporting; and if government regulations are set up to support a business model that focuses on clinician wellness and client needs. Many VC-funded companies do not operate like this currently. What we want here at NAMHP is to advocate for a change in governance regulations that allow VC investors to dictate business models and structure in the healthcare industry.
All big healthcare companies and hospitals have been using either VC or bank funds; without them, developing bigger infrastructure and technology is impossible. As healthcare practitioners, we need to use our funds wisely and not allow VC companies to dictate the healthcare companies’ policies and decisions that need to center client continuity of care and clinicians' needs.
TL;DR: NAMHP is not against VC, but part of our mission is to make their contribution to our beloved mental health industry limited and regulated so we prevent profit-first business models that actively harm both our clients and clinicians.
Sofia Georgiadou, PhD
NAMHP Community and Business Development Officer
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