Leonard Abramson, the founder of U.S. Healthcare, one of the first health maintenance organizations (HMOs), has died at the age of 93. Abramson, a pharmacist by training, launched U.S. Healthcare in 1973, capitalizing on the Health Maintenance Organization Act of 1973. The company pioneered a more open-ended HMO model that allowed for rapid expansion and was among the first to convert from nonprofit to for-profit status.

U.S. Healthcare aimed to increase cost efficiency by establishing set fees for medical services and managing patient access to specialists. Abramson claimed the company achieved savings by reducing hospital admissions and emphasizing preventive care. In 1995, U.S. Healthcare served approximately 2.2 million people and reported a medical cost ratio of 73 cents per premium dollar. However, the company faced criticism from some doctors and consumer advocates regarding service quality and patient recovery times.

In 1996, Abramson sold U.S. Healthcare to Aetna Life & Casualty for over $8 billion. This sale yielded him approximately $967 million. Following the sale, Abramson and his wife, Madlyn, became significant philanthropists, donating over $100 million to establish the Abramson Family Cancer Research Institute at the University of Pennsylvania. Their contributions supported groundbreaking research, including the development of the gene-altering drug Kymriah. Abramson's other philanthropic efforts included donations to the Children's Hospital of Philadelphia and Temple University's dental school.