Friday, July 30, 2010

The Economist Remarks on Hospitals as Investments Worldwide

The Economist had a article in last week's edition about Hospitals becoming more attractive investments around the world. In typical fashion the Economist warned of the effect of Obama-care dampening profit margins in the US but remarked that trends are favorable for more mergers and acquisitions around the world due to advancements in emerging markets and demographic shifts towards an older populace in developed countries.

Locally, I think there is a chance Obama care could help the prospects for a hospital like the HUMC since the numbers of uninsured will drop and take the bite out of the cost of charity care that the hospital currently has to deal with. I know more conservative readers of this site may oppose Obama-care but at least in this instance it could help out our local hospital in a positive way.

While I support more universal coverage I was not happy with many of the Health Reform Bill's many provisions as I do not feel enough cost cutting and efficiency was devised in the massive legislative initiative. Time will tell to see how this change plays out locally as we get closer to the year 2014.

Here is the article in the Economist:

The war of the wards
Investors are eyeing up hospitals around the world

http://www.economist.com/node/16646310?story_id=16646310
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