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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