Cons of Obama care 1. Obama care will greatly impact the managed care industry because it would require the implementation of more regulations which would become more costly to this particular industry. 2. With the increase in revenue due to the use of services, getting paid for Medicaid and Medicare services would mean formulation of new payment standards to include the measures of quality care. 3. The manufacturers of the medical equipment typically used in hospitals would not gain anything from the execution of better coverage and would create an industry tax increase of 2.3 percent.
Investment Opportunities:
Managed care companies buying hospitals and physician groups to prepare for the growth of Medicaid managed care. The acquisition of physician groups allow for future patient volume as part of a contractual health care agreement.
Pro
Increased health care coverage will expand patient volume which should help to offset the changes in reimbursement for hospitals.
Pharmaceutical and medical device companies will also benefit from the increased patient volume from universal health care coverage. More people able to access the system.
Pharmaceutical companies will be able to offer more innovative products to a displaced population that has been previously underserved.
Con
The Medicare and Medicaid decreased reimbursement as well as pay for performance criteria based on quality measures being met.
The need to upgrade technology to meet the requirements for