Authored by Jeff Patch via RealClearMarkets,
AltaMed Health Services reported $1.72 billion in revenue in 2024, which is more than many publicly traded healthcare companies. Yet unlike a public corporation, the nonprofit entity answers to no shareholders, enjoys broad tax exemptions, and derives much of its revenue from taxpayer-supported healthcare programs.
AltaMed also reported $1.66 billion in assets and its revenues exceeded expenses by $68.4 million. It operates more than 70 clinics, employs roughly 5,000 people, and serves more than 700,000 patients throughout Southern California, making it one of the nation's largest federally qualified health center (FQHC) systems.
But AltaMed's extraordinary growth raises another question that extends far beyond Southern California: What happens when a nonprofit grows into a multibillion-dollar enterprise while retaining the governance structure of a traditional charity?
That question has become increasingly relevant as individual nonprofit hospital systems, universities, and other charitable organizations now control hundreds of billions of dollars in assets while benefiting from tax exemptions, government reimbursements, tax-deductible donations, and public financing. Their primary accountability mechanism is a board of directors charged with ensuring that charitable resources remain devoted to public benefit rather than private profits.
Since 2001, AltaMed has paid more than $32 million in compensation to its CEO, Castulo de la Rocha, his wife Zoila Escobar, and one of their sons - which is significantly higher than most of its peer FQHCs. For instance, the chief executives of Family Health Centers of San Diego, Family HealthCare Network, and Comprehensive Community Health Centers each earned substantially less than de la Rocha in 2024 despite overseeing similarly large healthcare organizations.
Following scrutiny of excessive executive pay more than a decade ago, AltaMed adopted a split-dollar life insurance loan program designed to help retain selected executives. The program has provided substantial loans to a small group of senior leaders to finance life insurance policies. Split-dollar arrangements are technically legal, although federal officials have cautioned that similar structures have been used improperly in certain tax-avoidance schemes.
Executive compensation is only one measure of nonprofit governance. Equally important is how charitable organizations deploy their resources and whether those expenditures advance the mission for which they receive tax-exempt status.
Over the past two decades, AltaMed has built one of the country's most prominent collections of Chicano and Latino art. It says the collection supports its "Art as a Holistic Approach to Healthcare" initiative, and that artwork displayed throughout its clinics creates a more welcoming and therapeutic environment for patients.
However, AltaMed's involvement in the arts extends far beyond decorating clinic walls - it owns a collection of approximately 4,000 works of Chicano, Mexican, and Latin American art, the value of which exceeds $6 million. It has spent as much as $2 million on art-related activities outside the United States in places like Mexico City, Rome, Berlin, and Madrid. More recently, it has supported plans for a Museum of Chicano and Mexican Art in downtown Los Angeles, spending at least $150,000 on lobbying related to the proposal.
The organization has unquestionably expanded access to healthcare for hundreds of thousands of Californians. But AltaMed's growing role as an arts patron raises legitimate questions about how closely those activities are connected to its charitable healthcare mission.
That is a challenge that extends well beyond AltaMed. Nonprofit executives regularly oversee budgets larger than many cities, yet they remain governed by rules and oversight mechanisms developed for a much smaller nonprofit sector.
Congress created the tax-exempt status because charitable organizations provide public benefits that markets alone may not deliver. That public trust depends on confidence that charitable assets are being used primarily to advance charitable purposes, and not the financial interests of insiders. As nonprofits continue to grow in both size and complexity, policymakers should ask whether the accountability standards governing billion-dollar charities have kept pace with the institutions they now oversee.
Jeff Patch is an Iowa-based writer focused on legal, regulatory and political challenges that impact businesses and markets. Patch is a former Des Moines Register correspondent and Politico staff writer.
Tyler Durden Fri, 07/10/2026 - 19:45In a move that could break a years-long defense procurement deadlock with Washington, Turkey is finalizing the sale of its Russian S-400 air defense systems to Gulf states, potentially clearing the way for Ankara to buy US F-35 fighter jets, Turkish newspaper Hurriyet reports Friday.
For Ankara, offloading the Russian hardware resolves a years-long costly diplomatic and military bottleneck and controversy - a situation which dramatically improved after President Trump gave a clear greenlight during the annual NATO summit in Ankara this week.
But apparently it needs Moscow's formal permission before doing this, as Bloomberg reports, "Turkey is seeking Russia's consent to transfer air defense systems it bought from Moscow to a third country, an effort aimed at clearing the way for the purchase of US-made F-35 fighter jets."
via Reuters"Ankara made the approach in recent weeks, just months after President Recep Tayyip Erdogan proposed returning the S-400 missile systems to Russia — an idea that gained little traction, said Turkish officials, who asked not to be identified because the discussions are private," the report continues.
When asked by reporters whether he would lift legal restrictions on the transfer of the stealth fighter jet to Turkey, Trump responded, "We have a better relationship with Turkey, and Turkey has been in many ways much more loyal than other countries that we think would be loyal. And certainly something we will consider - yeah."
By disposing of the Russian equipment, Ankara is resuming talks on F-35 fighter jets and securing supplies of critical engine components for its own KAAN combat aircraft program, Hurriyet wrote further.
"Hopefully, when the F-35s are delivered to Turkey, the whole world will say America kept its promise," Erdogan said at a Wednesday closing news conference for the NATO summit.
Dumping its Russian S-400s could allow Turkey's government to be released from US sanctions under the Countering America’s Adversaries Through Sanctions Act, or CAATSA.
However, this would have to get past Congress first. The law, adopted in 2017, requires the US government to impose strict economic and political restrictions primarily on Russia, Iran and North Korea. But Turkey was subsequently hit by these sanctions after purchasing S-400 air defense systems from Russia in a deal signed in September 2017, with deliveries having begun in July 2019.
The big fear over NATO-member Turkey having the S-400 systems and F-35s at the same time was that secret technology critical to the American fighter jet would be compromised. Possessing the S-400s requires Russian advisory guidance and know-how.
Tyler Durden Fri, 07/10/2026 - 19:20Update(1855): The US is back to setting deadlines, coupled with new military threats, apparently. Judging by this week, which marked a dangerous return to guns-a-blazing in the Persian Gulf, it seems Trump is ready to back these warnings with new bombing raids. The only question will be the extent to which the Islamic Republic escalates in return. So far it has shown willingness to 'answer' US attacks with its own missile and drone launches, against US and allied bases and facilities among the Arab Gulf states.
Axios newly reports (...just after market-closing on Friday, it should be noted), that if Tehran doesn't declare the complete opening of the Strait of Hormuz and safe passage to all ships by close of Saturday, then the... or else!
"The Trump administration is demanding that Iran publicly acknowledge that the Strait of Hormuz is open and pledge to stop firing on commercial ships," the report says. The US has also renewed calls for Iran to immediately hand over its "nuclear dust" - amid the warnings. Axios reports the message was conveyed "directly" and "through regional mediators" - citing three officials.
Both sides have already accused the other of severely violating the terms of the MoU. And US Treasury issued fresh sanctions on Tehran Friday, which violates the 'no new sanctions' clause of the memorandum. So the MoU is clearly on life support as it is. Diplomacy is still moving on some fronts: "Iranian Foreign Minister Abbas Araghchi and Omani Foreign Minister Sayyid Badr al-Busaidi are expected to meet Saturday in Muscat to discuss the Hormuz crisis," Axios continues. But here's the deadline:
The U.S. officials said they expect Iran to issue a statement after Saturday's meeting in Oman.
Iran has not appeared in the mood to 'compromise' or admit defeat on any level, and so the world might witness yet more waves of US attacks by Saturday night and into Sunday. A big question remains is whether Israel will continue sitting on the sidelines. Recent reports suggest Washington has been behind the scenes pressuring the Israelis not to act against Iran unilaterally. But the Netanyahu government remains a big wild card in all this.
*US OFFICIALS SAY EXPECT IRAN TO SAY HORMUZ WILL BE TOLL-FREE
*US OFFICIALS SAY EXPECT IRAN TO ANNOUNCE IT WON'T FIRE AT SHIPS https://t.co/lFMO4xiK6r
* * *
The guns have actually been silent in the Middle East overnight, after two days of deadly strikes between the United States and Iran, amid a general return to premarket open headlines of 'peace imminent again' as mediators desperately work to get diplomacy back on track. The White House position is that the ceasefire is over but that Washington has agreed to reengage Tehran in mediated talks.
Trump indicates US has agreed to Iran talks, but United States has stated to them, in no uncertain terms, that cease fire is over.
The New York Times writes early Friday that "Qatar, which helped broker the U.S.-Iran truce last month, has been in talks with Washington and Tehran to de-escalate the crisis, according to two officials with knowledge of the matter, who requested anonymity to discuss sensitive diplomacy. In recent days, several other regional countries — Bahrain, Kuwait and Jordan, all of which host U.S. military facilities — said they have come under Iranian attack."
via Shutterstock/National InterestThe same report further says, "Even as the fighting appeared to subside on Friday, it remained unclear whether the latest mediation efforts could prevent that cycle from repeating." The situation has devolved into a "dangerous test of wills, with each side trying to show that it can absorb the other’s attacks and respond forcefully, without tipping the conflict back into full-scale war," NYT continues.
And separately Bloomberg also reports, "Talks between the US and Iran on a permanent peace deal are continuing, according to a US official, despite two days of clashes that threatened an already fragile ceasefire. The renewed hostilities risk undermining efforts to rebuild depleted global oil inventories, the International Energy Agency said."
Bloomberg continues: "Oil prices steadied on Friday after a bumpy week. While gasoline prices have fallen since the fragile ceasefire, they’ve lagged crude’s sharp decline, prompting one asset manager to buy protection against stickier-than-expected US inflation."
There appears real movement on this, given also that Reuters is freshly reporting that Qatar negotiators are currently in Iran to meet Iranian officials, as part of the effort to immediately de-escalate tensions and create conditions for broader negotiations.
Still, the crisis is on edge and full-scale war could return at any moment, also as the UK Maritime Trade Operations agency is once again alerting global vessels security threat in the Strait of Hormuz remains at its highest level.
In Iran, the burial of the slain Supreme Leader Ayatollah Ali Khamenei has finally concluded, and the IRGC's top commander, Brigadier-General Ahmad Vahidi, has pledged vengeance against the US and Israel for the assassination, saying it won’t "be erased from the historical memory."
The Revolutionary Guard chief called for the "full realization of justice and a fitting response to the criminals, especially the child-killing American army." An estimated 41-43 million people attended the six-day funeral for the late Khamenei, according to Iranian media.
NEW: Iran warns it will retaliate against infrastructure attacks and strike Israel in response. pic.twitter.com/JmkyZ7Zeyy
— Clash Report (@clashreport) July 10, 2026In the meantime we commented overnight on who is not seeking permanent Iran peace at this point, on lingering concerns about the Islamic Republic's nuclear program. The Wall Street Journal in a Thursday evening report says that Israel has provided fresh intelligence to the White House indicating just such a Tehran-linked plot.
The timing is quite curious and interesting given it comes just as the warring sides standing on the brink of returning once again either to talks, or to full-scale war:
Israel shared new intelligence with the U.S. that it said indicated a fresh Iranian plan to kill President Trump, people familiar with the matter said, a finding that would mark an escalation in the war between Washington and Iran.
Iran for years has vowed openly to retaliate against Trump for the assassination of Qassem Soleimani, who was a top general in the Islamic Revolutionary Guard Corps, in the president’s first term.
The Israeli embassy in Washington declined to comment. Iran’s Mission to the United Nations didn’t immediately respond to a request for comment. The White House referred The Wall Street Journal to comments the president made on Wednesday.
The Israelis have remained deeply dissatisfied with terms laid out in the previously agreed-to MoU, and so have every incentive to goad Washington further into the conflict. Certainly many within the US administration know this, and so might be taking this new 'intelligence warning' - which was leaked rather quickly to major media - with the appropriate degree of skepticism.
The US has still - somewhat surprisingly - affirmed it remains engaged in 'technical talks' with Iran, despite the prior days of tit-for-tat bombings. "Technical talks between the US and Iran are continuing, according to a US official, following two days of clashes that threatened to shatter an already fragile ceasefire between the two nations," reports Bloomberg, also late in the day Thursday. "The US is still committed to finding a solution with Iran, the official said Thursday, speaking on condition of anonymity to discuss the matter."
Israel says ready to attack Iran for 'third time if necessary' pic.twitter.com/KDkJ62iEfJ
— Middle East Eye (@MiddleEastEye) July 10, 2026So it appears there's still hope that things might not spiral further. As for the alleged assassination plot, this isn't the first time Iran has faced such accusations, and each time Tehran officials have vehemently denied them.
Tyler Durden Fri, 07/10/2026 - 19:00Authored by Aman Tripathi via Interesting Engineering,
Energy project facilitator GridMarket and nuclear technology developer Deployable Energy have formed a commercial agreement to deploy modular microreactors across the United States. The 40-year contract carries an estimated total value of $145 billion.
The collaboration follows a recent successful operational test by Deployable Energy.Deployable EnergyThe initiative intends to install more than 3 gigawatts (GW) of electrical capacity by 2035, focusing primarily on data centers, cloud infrastructure facilities, and industrial manufacturing plants.
"Demand for dependable, continuous power is growing faster than traditional infrastructure can support," said Bobby Gallagher, Co-Founder and CEO at Deployable Energy.
The collaboration follows a successful operational test by Deployable Energy. The company recently achieved criticality with its prototype system, known as the Unity Nuclear Battery. This initial test reactor reached a self-sustaining nuclear reaction 150 days after the project began.
Speeding up domestic nuclear power deploymentThe development occurred under the US Department of Energy's Nuclear Energy Launch Pad program, which operates in accordance with a federal executive order designed to speed up domestic nuclear power deployment.
The rapid expansion of artificial intelligence applications and cloud computing infrastructure has created an unprecedented demand for baseload electrical power. Finding locations with sufficient grid capacity has become a primary obstacle for technology companies building new facility hubs.
Under the new agreement, GridMarket will use its database of evaluated commercial sites and current corporate clients to establish a pipeline for the new power systems.
The companies plan to install 500 megawatts (MW) of power capacity annually between 2030 and 2035. According to GridMarket executives, corporate clients are actively looking for alternatives to traditional electrical grid connections because standard power infrastructure cannot keep pace with the power requirements of modern computing facilities.
To shorten construction timelinesThe Unity system differs from conventional utility infrastructure because it is manufactured in components at a factory rather than built entirely on-site. This modular design is intended to shorten construction timelines and allow installation directly at the site of demand, bypassing local electrical transmission bottlenecks. The microreactor operates as a combined utility system.
"Unlike the power and cooling systems running today's data centers, the Unity Nuclear Battery delivers electricity, heat, and cooling in a single system - dramatically reducing the water intensity that has strained local communities hosting large-scale compute infrastructure," said GridMarket in a press release.
The immediate priority for the two entities involves selecting a host location for a physical pilot installation. This initial project will serve to verify the technology under real-world operating conditions before beginning wider commercial production. Deployable Energy has committed to giving GridMarket's client base priority scheduling for subsequent reactor deliveries.
Corporate leadership from Deployable Energy noted that current infrastructure cannot support the growth rate of digital data systems. The companies intend to publish specific details regarding the pilot site selection, regulatory approval tracking, and the initial group of commercial participants as the engineering program moves closer to the manufacturing phase.
"We believe advanced nuclear technology can become an important part of the energy mix supporting the next generation of digital and energy infrastructure," concluded Bobby Gallagher, Co-Founder and CEO at Deployable Energy.
Tyler Durden Fri, 07/10/2026 - 18:55