Fitch: Change in political environment could disrupt healthcare business models

Many major healthcare issues are hanging on the outcome of the upcoming presidential election, according to a Fitch Ratings report.

Topics such as the Affordable Care Act and drug pricing are expected to be included in policy proposals and debates leading up to the November election. "In the near term, these issues pose headline risk to healthcare equity prices that may influence capital deployment decisions," according to Fitch.

Over the longer term, the upcoming election will have a significant effect on the healthcare industry, as change to the legislative and political environment could cause disruption to business models, according to Fitch.

The viability of public health insurance exchanges is one issue that hinges on the election. "Vibrant exchange marketplaces with adequate competition to ensure rational pricing would likely be the best case scenario for healthcare providers and, by extension, the rest of the U.S. healthcare industry. This is more likely to occur with a balance of power that favors Democrats," stated Fitch.

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