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Thread: The health care industry's bubble

  1. #1
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    The health care industry's bubble

    Bob Herman Jan 12

    Health care companies at this year's J.P. Morgan Healthcare Conference celebrated the Republican tax overhaul and trumpeted optimistic views of their future financial power. But as more Americans become unable to afford drug prices, hospital bills, deductibles and copays — and as they voice their anger — there is sentiment brewing in the industry that a day of reckoning will come.

    Key quote: "We are in the middle of a bubble in all health care asset classes," said Bijan Salehizadeh, a health care investor at NaviMed Capital. "Everyone knows it, but no one knows how it will end."

    snip

    Spencer Perlman, a health care analyst at Veda Partners who wasn't at the J.P. Morgan meeting, has long said companies that obstruct competition or play with regulatory loopholes have been playing with fire.

    "So much of current health care valuations are based on revenue and earnings projections that are generated by reimbursement arbitrage, legal maneuvering and/or rent-seeking behaviors," Perlman said.

    Get smart: Health care eats up almost one-fifth of the U.S. economy. The companies that get a slice of that pie don't have incentives to give it up.

    https://www.axios.com/the-health-car...1db68cbd2.html

  2. #2
    Veteran Member EnigmaO01's Avatar
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    A nearby city (Ft. Wayne, IN) is building yet another large hospital when we have three already, which seems overload for a city the size of Ft. Wayne.

    My parents could have bought another Mercedes with the bill from a three day hospital stay by my mother. Fortunately they have good insurance and my dad had two pensions.

    What surprises me is the insurance companies and the government are willing to pay these outrageous fees. Must be some kind of collusion going on.

  3. #3
    quichierbichen
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    Quote Originally Posted by EnigmaO01 View Post
    A nearby city (Ft. Wayne, IN) is building yet another large hospital when we have three already, which seems overload for a city the size of Ft. Wayne.

    My parents could have bought another Mercedes with the bill from a three day hospital stay by my mother. Fortunately they have good insurance and my dad had two pensions.

    What surprises me is the insurance companies and the government are willing to pay these outrageous fees. Must be some kind of collusion going on.
    They don't pay those fees. They earn all sorts of discounts that wouldn't be available to your mom as an individual.
    Thanks from NightSwimmer and EnigmaO01

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