Each year, health care spending chews up an increasingly large chunk of state and federal budgets. This trend is clearly unsustainable. Which is why the Australian government is conducting multiple reviews of the system in the hope of providing more efficient and cheaper care.  So, should we put our faith in the efficacy of these reviews?

continue…

by Ben MacNevin Posted in Health Care

• 3 Comments
• save this article
• POSTED IN Health Care

One year ago this week we reviewed Valeant Pharmaceuticals. Specifically, we revealed that sell side research analysts had remained collectively positive on the prospects of the stock even as the share price was nose-diving as difficulties for the business and its managers were becoming apparent. Fast forward one year. The stock price has been decimated, and only now has the collective call of the Street turned to a sell. Too little too late. But definitely not the first nor the last.

continue…

by Christopher Demasi Posted in Companies, Health Care

• save this article
• POSTED IN Companies, Health Care

Last month, Healthscope (ASX:HSO) announced it had experienced slower-than-expected hospital revenue growth for the quarter.  The announcement prompted a wave of selling, with the share price falling around 30%.  Does this present a buying opportunity?  Given the metrics of the private hospital industry, we think so.

by Roger Montgomery Posted in Health Care, Stocks We Like

• 11 Comments
• save this article
• POSTED IN Health Care, Stocks We Like

When the share price of Healthscope plunged 30% in October, we received numerous queries from many of our thousands of investors and readers.  In short, they were asking: after a price dive like that, what did we think about the business now? continue…

by Roger Montgomery Posted in Editor's Pick, Health Care

• 14 Comments
• save this article
• POSTED IN Editor's Pick, Health Care

The Australian Government has announced it will cut the cost of thousands of medical devices, from pacemakers and lenses to knees and hips. It claims its prostheses price reform will “take pressure off private health insurance premiums”. But looking behind the numbers, it’s hard to get too excited. continue…

by Ben MacNevin Posted in Health Care

• save this article
• POSTED IN Health Care

Sirtex Medical (ASX: SRX) has just reported its FY16 results, and they were pleasing on every metric. We recently commented on the firm’s sales growth which the market took the news badly and subsequently the price of the firm’s shares fell. continue…

by Scott Shuttleworth Posted in Health Care

• 13 Comments
• save this article
• POSTED IN Health Care

ResMed is a business we like. Our positive view of the company was reinforced when ResMed last week released a robust result for the fourth quarter of FY16. Its acquisition of cloud-based health solutions provider, Brightree, could produce an even stronger outlook. continue…

by Ben MacNevin Posted in Companies, Health Care

• save this article
• POSTED IN Companies, Health Care

Much has been written of Australia’s publicly-listed residential aged care providers of late. While seemingly a simple business in which operators provide accommodation and socially-imperative care for our elderly in return for a fee; the economics of these businesses are surprisingly complex. continue…

by Andrew Macken Posted in Health Care

• 5 Comments
• save this article
• POSTED IN Health Care

Australia’s population is ageing, yet the public and private hospital systems are growing at very different speeds. Public hospital beds grew by 1 per cent each year between 2010 and 2014, compared to 3 per cent annual growth in the private system. Increasing demand for hospital care will flow to operators that are expanding capacity, which means that major private hospital companies like Healthscope (ASX: HSO) and Ramsay Health Care (ASX: RHC) are well placed to grow earnings over the long term.
continue…

by Ben MacNevin Posted in Health Care, Stocks We Like

• 7 Comments
• save this article
• POSTED IN Health Care, Stocks We Like

CSL Limited (ASX: CSL) is a global developer and manufacturer of plasma-derived therapies for various diseases and disorders. We’ve blogged on CSL previously (see here) and for the most part, the story hasn’t changed. continue…

by Scott Shuttleworth Posted in Companies, Health Care

• 2 Comments
• save this article
• POSTED IN Companies, Health Care