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Nonprofit Hospitals Urged to Diversify Endowments
Health Leaders Media

Nonprofit hospitals should diversify their investment portfolios and reduce heavy bond and cash allocations while exploring alternative investments such as equities, a Commonfund Institute report recommends.

William F. Jarvis, managing director of the Commonfund Institute, the nonprofit research arm of Commonfund, investment advisors to nonprofit institutions, says nonprofit hospitals need to adopt the Endowment Model of investment management used by many universities that relies upon “a highly diversified portfolio of assets with a higher than usual tolerance for illiquid assets.”