From “Dr. Joe’s Market Diagnosis”, by Dr. Joe Duarte
Shares of Gilead Sciences (NASDAQ: GILD) may get a bounce as the markets look for way to make money from the swine flu outbreak. But the breakout of a new flu scare brings home a very significant point that goes beyond making money from a potential crisis.
As the swine flu hype kicks into high gear, and President Obama has instructed the Senate Majority to pass health care reform with 51 votes by invoking a complex procedure called reconciliation which blocks filibusters, consider this: fewer physicians, worsening demographics, and decreased reimbursement are coming to a head as the White House increases his focus on health care.
After nearly two decades of managed care, the U.S. health care system is about to lurch into a new degree of uncertainty, and the White House seems to be shocked at what has been obvious to physicians and patients for a few years now. The market has reached the point at which it can no longer bear the stresses put on it. So physicians are opting to opt out. [entire post]