ESG in Healthcare: Addressing Key Considerations and Risks

Like other industries, healthcare has seen increased interest from regulators, investors/donors, communities, staff, counsel, insurers and clients regarding organizational attention to ESG (Environmental, Social and Governance) principles and practices. An appropriate commitment to ESG principles and practices- whether called ESG or something else- can enhance the awareness and culture of responsibility within an organization and improve government, employee, patient and public relations in a way that may significantly reduce risk and positively affect culture immediately and over time. More directly, with pending federal proposals to require ESG reporting for publicly traded companies, and with the public and Congress increasingly focused on questions about the continuing validity of tax-exempt status of non-profit hospitals, a commitment to ESG principles and practices may be an imperative for some healthcare organizations. From proper waste disposal (E), to executive, professional and staff compensation and benefits policies (S), to Board composition, incentives and processes (G), ESG principles and practices are important considerations for healthcare organizations.

On the opposite side of the ESG momentum are antitrust concerns raised against the ESG movement. At the close of 2022, certain members of Congress raised alarm and called for investigations into whether certain organizations acting collectively in the name of ESG are violating antitrust laws. Although the antitrust concerns are primarily focused on environmental activist organizations that are seeking to exert influence in the fossil fuel industry, they raise broader questions about the level of care needed when undertaking ESG initiatives.

Listen as our authoritative panel of healthcare attorneys examines ESG in the healthcare industry. The panel will discuss the increased focus on ESG and the key risks and benefits that healthcare providers and administrators need to consider in light of the legal and regulatory framework in which these organizations operate. The panel will discuss the risks and considerations from multiple perspectives, and dissect the issues in the E, S and G.