NEJM Interviews NEJM Interview: Nishant Uppal on the emergence of venture capital investing by academic medical centers and its potential implications.
Nov 26, 2025
Nishant Uppal, an instructor in medicine at Massachusetts General Hospital, discusses the rise of venture capital investments by academic medical centers. He highlights how financial pressures from COVID and rising costs are pushing these institutions to diversify. Uppal explains the structure of venture capital funds and notes that many AMCs are investing in unrelated companies. He raises concerns about unclear returns and calls for better oversight and policy responses to financial pressures affecting healthcare.
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AMCs Under Rising Financial Pressure
- Academic medical centers face growing financial strain from pandemic losses, inflation, and changing payer and research landscapes.
- These pressures are driving AMCs to diversify revenue beyond patient care, research, and education.
How Venture Capital Works
- Venture capital buys equity in startups to generate returns from a few winners in a risky portfolio.
- Limited partners typically supply seed capital, including pension funds, foundations, and pharma partners.
AMC VC Activity Is Widespread
- Most AMCs have engaged in venture-capital deals over the past decade, with private AMCs slightly more active than public ones.
- Many investments target companies whose founders have no affiliation with the AMC, not just spinouts from their labs.