New investigation highlights harms of for-profit healthcare funded by IFC-backed private equity group
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Article summary
New exposé highlights allegations of abuse at hospitals invested in by IFC’s client TPG Inc.
On August 25, Bloomberg released a second instalment of its investigation into World Bank Group investments in for-profit hospitals through its private sector arm, the International Finance Corporation (IFC). It follows a January investigation into IFC’s investments in hospitals where deeply concerning practices were alleged, including detaining patients or even corpses over unpaid fees, unaffordable charges that forced patients into poverty, and denial of emergency care (see Observer Spring 2025).
The new investigation focused on the role of private equity, specifically US-based firm TPG Inc, whose investors include the IFC and the Gates Foundation. They support TPG’s RISE Fund, which has invested in the hospitals in low-income countries. The report compiled research and accounts from whistleblowers to paint a devastating picture of practices encouraged by TPG in hospitals it owns, to maximise profits. At hospitals in Kenya, Nigeria and Pakistan, staff reported harmful and illegal practices, including encouraging over-prescription of tests and treatments, abusive senior staff, dismissal following whistleblowing, and medical malpractice to fulfil procedure quotas.
The report bolsters ongoing calls from civil society organisations including Oxfam and ISER Uganda for the IFC to responsibly divest from such operations and improve its accountability and transparency practices – following a similar July investigation by the International Consortium of Investigative Journalists. Despite the wealth of evidence highlighting the ineffectiveness of mobilising private finance for development (see Observer Summer 2025), the IFC commented on the report that “private health care is helping meet the large demand for health services, a demand that public sector health care cannot meet on its own.” In fact, the IFC has continued to invest in TPG, as recently as June.
