Medical services industry
Article Abstract:
Medicare's financial base is forecast to collapse by mid-2001, unless action is taken Congress. The elderly, an important market for health maintenance organizations, are being enrolled in managed care plans under incentives provided by Medicare's capitated rate formula. Consolidation, competition, and earnings are important issues for the medical care industry in 1996, but these stocks are expected to outperform the market through 1999-2001.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1996
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Medical services industry
Article Abstract:
Medical care firms are required to reduce book value and reassess assets by a new accounting rule from the Financial Accounting Standards Board. The adoption of managed care is changing medical practice with limitations on care alternatives by insurers. Acute care firm downsizing is continuing and enrollments in health maintenance organizations are rising. Investors must carefully select these stocks, or defer commitments until later.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Medical services industry
Article Abstract:
The aging of the baby boom generation will result in 49% of the American population being over 40 by the year 2010, and demand will increase for medical care services with this shift. This is an opportunity for health maintenance organizations to expand, since only 8% of the over-65 bracket and 20%-25% of the general population are now enrolled. These competitive stocks should outperform the market through the years 1999-2001.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1996
User Contributions:
Comment about this article or add new information about this topic: