The Importance of Philanthropy in Healthcare

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Cliff Megerian

Healthcare is one of the most complex and essential sectors of the regional economy. At University Hospitals, care is guided by a simple but powerful mission: To Heal. To Teach. To Discover. As pressures on health systems continue to rise, philanthropy plays a critical role in sustaining access to care, advancing innovation and strengthening the health infrastructure businesses and communities rely on.

In a recent Crain’s Cleveland article, UH CEO Cliff A. Megerian, MD, FACS, Jane and Henry Meyer Chief Executive Officer Distinguished Chair, explains why philanthropy in healthcare matters now more than ever.

Q: Many people think healthcare is a business sustained by reimbursement and insurance. Why is philanthropy necessary?

DR. MEGERIAN: Healthcare does operate within a business framework, but it is fundamentally different from most industries. University Hospitals was founded 160 years ago with the belief that “the needy are the most worthy,” and that principle still guides us today. As a mission-driven, nonprofit health system, we care for people in moments of great vulnerability, regardless of their ability to pay.

Reimbursement simply does not cover the full cost of that commitment. In 2024 alone, UH provided nearly $500 million in financial support to patients, including both charity care and the portion of Medicare and Medicaid costs that are never reimbursed. Together, those dollars represent care delivered without full payment, often to patients with complex needs who depend on access to local healthcare.

Philanthropy helps close that gap. Just as importantly, it advances our mission beyond the bedside — supporting physician training, medical research and community-based programs that improve health beyond hospital walls. At UH, philanthropy isn’t supplemental; it is foundational to keeping care strong, reliable and accessible.

Q: Why is this moment so critical for philanthropic support?

DR. MEGERIAN: Healthcare is experiencing a convergence of challenges we haven’t seen before, at least not on this scale. Demand is rising as populations age and chronic conditions increase, while workforce shortages, inflationary pressures and shifting reimbursement models strain health systems nationwide.

For an organization like UH, which serves urban, suburban and rural communities across our region, philanthropy provides the flexibility and foresight to respond thoughtfully. That can mean investing in groundbreaking advancements or new technologies, supporting new models of care that better meet patient needs, or adapting our services to meet shifting community health needs.

Philanthropy helps us stay prepared, nimble and forward-looking in a rapidly changing healthcare environment.

Q: Why is flexible support so important to strengthening a health system?   

DR. MEGERIAN: Every contribution to UH makes a difference. Many gifts support specific programs or spaces, and those investments and the donors who make them have helped shape UH in visible and meaningful ways. But flexible support plays a different, and equally vital, role.

Healthcare challenges are deeply interconnected. Patients don’t arrive with needs confined to a single department, and effective care depends on teams, infrastructure and systems working seamlessly together. Flexible philanthropic support allows us to strengthen the underlying capabilities that make excellent care possible systemwide. That could be investments in technology, supporting workforce development or improving care coordination. When those foundations are strong, every patient, program and service benefits.

This kind of gift reflects trust and confidence in our mission, governance and leadership, and in our ability to allocate resources responsibly. The impact may not always be immediately visible, but it’s felt every day by patients and our care teams.

Q: How does UH ensure accountability for philanthropic support?

DR. MEGERIAN: Donors place deep trust in us, and we take that responsibility seriously. Our commitment is to be transparent, responsible and accountable — and to honor the intent behind every gift.

We focus on clearly communicating how philanthropic support is used and the difference it makes. That includes governance oversight, financial accountability and sharing outcomes in ways that connect dollars to real-world impact.

Ultimately, philanthropy is about partnership. We believe it’s essential that our supporters see how their generosity directly advances patient care, strengthens our workforce and fulfills the promises we’ve made to the community.

Q: What role does philanthropy play in supporting caregivers?

DR. MEGERIAN: When we talk about caregivers, we mean our dedicated healthcare professionals and staff — the nurses, physicians, technicians and teams who make care possible, every day. They are the heart of our health system, and their day-to-day work transforms lives.

Philanthropy helps ensure they have access to ongoing education, innovative tools and supportive environments where they can thrive. When caregivers feel valued, patients receive better care, and the entire health system performs more effectively.

That investment has ripple effects throughout the community – improving patient outcomes, supporting workforce retention and contributing to the overall wellbeing of our community.

Q: How does a strong health system benefit the broader business and civic community?

DR. MEGERIAN: A strong community depends on a strong healthcare system. Employers need a healthy workforce. Families consider access to care when choosing where to live and work. Healthcare institutions like UH are also major employers, research engines and economic anchors. Resilient health systems make communities more competitive, more attractive and more stable.

Philanthropy that strengthens healthcare benefits patients as well as regional competitiveness, productivity and long-term growth. In that sense, giving to healthcare is both a compassionate act and a strategic investment in our community’s future.

Q: What would you say to leaders considering philanthropic investment in healthcare?

DR. MEGERIAN: Investing in healthcare is ultimately a leadership decision. It reflects a commitment to people, to community and to long-term impact.

Support for healthcare helps ensure care is available when it’s needed, supports innovation and strengthens an institution that touches nearly every family and business in our region. It’s a powerful way to make a meaningful and lasting difference.

Q: What gives you hope as you look ahead?

DR. MEGERIAN: I’m hopeful because of the continued generosity and commitment we see from this community. For 160 years, people have stepped forward to support University Hospitals, in moments of challenge and opportunity alike.

That spirit of partnership is powerful. It reminds us that community health is a shared responsibility, and that when a community invests in its health, everyone benefits. It’s why UH is here, and why we’ll continue to be here for generations to come.

Learn more at UHGiving.org/BecauseofYou.

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Because of You: the Campaign for University Hospitals

We can make an impact at UH and in our community Because of You.