Planned Parenthood’s Business Model

Heather   |   June 13, 2013

Under the deceiving guise of women’s health care, Planned Parenthood has been running the largest, most lucrative business in the abortion industry. We’ll analyze how this business model operates by looking at Planned Parenthood’s services, locations and profits.

In any company, you want to provide products or services that are related and create the opportunity for more business. For example, a consumer goods company may sell laundry detergent, fabric softener and dishwashing liquid. A customer may buy any one of these products, but the most ideal (and most profitable) customer is one who loyally purchases all three.

That same principle applies to Planned Parenthood. Planned Parenthood’s services are structured to create a cyclical and interdependent relationship with women based on sexual activity. A woman may come in for a pap smear and then be persuaded to consider the birth control pill or other form of contraception. If she contracts an STD, Planned Parenthood is there to provide testing and treatment. If a woman faces an unplanned pregnancy, she returns to Planned Parenthood for a pregnancy test and potentially an abortion.

Let’s take a look solely at the abortion services. Planned Parenthood likes to claim that abortions only reflect a mere 3% of its medical services. However, that number is deceiving. Planned Parenthood offers three primary services to pregnant women: prenatal services, adoption referrals or abortions. According to Planned Parenthood’s 2011 Affiliate Medical Summary, a record high of 333,964 abortions were performed, representing over 90% of the services rendered to pregnant women. This means 9 out of 10 pregnant women who walked into a Planned Parenthood aborted their babies. This reflects only surgical abortions; chemical abortions, like the abortion pill RU-486 are not included. If they were, the statistics would be even grimmer.

More alarming is the trend that Planned Parenthood abortions have steadily increased over a ten-year period. The old battle cry of the pro-abortion movement was “safe, legal and rare.” A look at Planned Parenthood’s own annual reports reveals that abortions have increased from 197,070 in 2000 to 333,964 in 2011. Abortions have not become rare at Planned Parenthood, but instead have grown by more than 65%. In addition, while abortions have risen, cancer screenings and prevention services have dropped from the previous year by 29%. This certainly gives just cause to question Planned Parenthood’s true motives when it comes to women’s health.

In business, location can mean the difference between thriving and closing the doors. Planned Parenthood’s abortion business is no different. They locate their abortion facilities near those most likely to have abortions. Statistics show that abortion is decimating minority populations. It is the leading cause of death for African Americans, more than all other causes combined. Hispanic women have abortions at a rate 2.1 times higher than white women; Black women have abortions at a rate of 3.4 times higher than white women. It should come as no surprise that 79% of Planned Parenthood’s 165 surgical abortion facilities are strategically placed within walking distance of African American and/or Hispanic/Latino communities. In a research study conducted by Protecting Black Life (an outreach of Life Issues Institute), 2010 Census tract data was used to construct an interactive map showing a two-mile radius around the Planned Parenthood surgical abortion facilities. The map incorporates Google Maps functionality, giving you an up close and personal view of just how close these abortion facilities are to minority neighborhoods. The interactive map and supporting research are published at Protecting Black Life.

Another targeted demographic is college-aged women (20-24 years). They receive 32% of all abortions. 75% or 124 of the 165 Planned Parenthood surgical abortion facilities are within walking distance of one or more college campuses.

By targeting those most likely to have abortions, it is evident Planned Parenthood’s goal is to ensure that it is the familiar and convenient location for abortion services.

Planned Parenthood has three primary sources of revenue: health services, private donations and government grants and reimbursements. Unlike a business, Planned Parenthood receives over 45% of its budget from taxpayer funds equaling a record high of more than $542 million according to its latest annual report. While taxpayer funds cannot be used to directly fund abortions, it provides the financial resources necessary to pay utilities and other expenses that enable Planned Parenthood to remain open. It can then allocate other funds toward abortion services. Now, under Obama as the most pro-abortion president in our nation’s history, we can expect that more taxpayer money will continue to support the abortion giant.

Just how much is Planned Parenthood making off of abortions? In Fiscal Year 2009-2010, Planned Parenthood earned an estimated $154 million from the 329,445 abortions they performed. This is a significant portion, representing nearly half of the income from all health services rendered.

Although Planned Parenthood is considered a non-profit organization, each year they consistently yield a substantial profit. In the 2011-2012 Fiscal Year, their profit equaled $87.4 million. The highest year of profits was experienced in 2010-2011 with a staggering $155.5 million.

This is evidence of the blood money coming at the cost of countless unborn babies and their mothers. Clearly, abortion represents a much larger portion of Planned Parenthood’s business than they care to admit. In reality, abortion is an essential and significant segment of Planned Parenthood’s business model. It is critical that Planned Parenthood be held accountable for the injustice of being the largest promoter and provider of abortions in America.

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