Betting on a Sick Boom
This article discusses the recent buyout of HCA, the largest for-profit hospital chain in the U.S., by several private-equity firms.
Clearly, the folks who bought the company see a big future in sick people requiring hospital care. As the chairman of a leading health care consulting firm says in the article:
“Everyone in the industry is waiting for the Baby Boomers…The presumption is that we’re all going to be in the hospital soon…
Probably not a bad bet.”
The article goes on to note that, in typical leveraged buyout form, the acquirers of HCA will likely sell off underperforming hospitals in an attempt to maximize the value of their investment. This, of course, may lead to a reduction in hospital beds, which further stresses the system and requires a reduction in the average length of a patient stay.
Good for the bottom line. Maybe not so good for you.
A preventive nutrition program to avoid chronic conditions and the need for costly hospital care is clearly a better option.
