While stock in hospital companies has taken a hit over discussion around Medicare for All proposals, Larry Robbins, founder and CEO of Glenview Capital Management, says investors should still bet on hospitals, according to Barron's.
During the Ira Sohn Investment Conference in New York May 6, Mr. Robbins told attendees any threat imposed by Medicare for All proposals is much smaller than recent slides in stock indicate. According to Mr. Robbins, Medicare for All has less than a 1 percent chance of happening.
Therefore, owning stock in Nashville, Tenn.-based HCA Healthcare, Universal Health Services in King of Prussia, Pa., and Dallas-based Tenet Healthcare is a wise decision, Mr. Robbins said. He also added hospital companies tend to improve their financial performance when government is more active in price setting and subsidizing insurance.
"Hospitals are not under attack," he said, as quoted by Barron's. "As a hospital investor, you should hope that mandatory Medicare happens."
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