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Crony Care
What an ACA Winner Looks Like

Premiums are high, copays are high, and both labor and business are unhappy about the way Obamacare is restructuring the American health system. But for those with the good sense to bet that insurers and hospitals would make bundles of cash from the new law, Obamacare has turned into an investment bonanza. The WSJ reports on Glenview Capital Management, a hedge fund run by Larry Robbins that invested in hospitals and insurance companies—and reaped over $3.2 billion:

Glenview’s flagship fund has averaged a 26% annual return since the beginning of 2012, people familiar with the matter said, much better than the industry’s 6% average, according to industry tracker HFR Inc.

The firm’s assets under management have increased from $4.5 billion in 2012 to $11.8 billion now, according to people familiar with the matter. It has about a third of that total invested in Aetna, Humana, Anthem and Cigna, plus hospital operators such as Tenet Healthcare Corp., according to the people.

It’s long been clear that hospitals and insurers are some of the biggest winners from this law, and now we can add Wall Street to the mix. Meanwhile, health care continues to be a financial burden on many Americans, even those who have insurance through the ACA, and that burden will only increase if structural factors like hospital mergers continue to inflate prices. Affordable, indeed.

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  • Jacksonian_Libertarian

    It was always going to be bad for the consumer, written by Big Government for Big Business to reduce the competition and thereby increase prices and profits. It is the “Feedback of Competition” that forces continuous improvements in Quality, Service, and Price, in free markets. The Government Monopoly and all Monopolies suffer from the deficiency disease from the lack of the “Feedback of Competition”.
    The only thing that will fix the healthcare industry is for the patient to be put back in charge of the buying decision. The Government, Employers, and Big Insurance, all must be forcibly excluded from any say in the industry, other than to enforce their own exclusion.

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