The Big Question

Tuck Business School Professor Anant Sundaram is an expert in corporate valuation, mergers and acquisitions, corporate governance. We asked him:

Q & A

How did a finance professor
become interested in health
care delivery science?

Health care is an immense sector. We all consume it, yet it is opaque. One-fifth of our economy just sits there — 80% in a sector we don’t look at carefully. It is ripe to be pried open and looked at through the finance lens.

We don’t currently understand a lot of this sector’s financing (nonprofit models are involved, government programs are involved). The lack of clarity creates a fantastic opportunity to understand new systems of finance and governance.

Health care delivery is a very different beast…we have no road maps, no guidance, no agreement on what are principles of good financial management. As teachers leading a new field, our challenge at Dartmouth is to lay a groundwork in six weeks and two onsite sessions. The decision makers in this hybrid model of financing need to understand three key principles of for-profit finance: generate more revenue for each dollar of cost; do it at lowest possible cost; invest for the future. In health care delivery today, incentives don’t exist to do this.

The nonprofit sector needs financial discipline. This the core of my interest, and this is what we teach.

Inspiration Delivered