I talk a bit about stock buy backs, why? Because as a consumer or a patient, we pay for them. Insurance companies, all the majors on the S&P 500 are all doing stock buy backs with United leading the pack and also shoving out some dividends. Why do they do this? To increase the price of their stock and to embellish their CEOs with more money, plain and simple. With health insurers the trade off is something like this, you get narrow networks and they get more money to finance their stock buy backs.
Insurance Carrier Stock Buy Backs Continue to Rise While Consumers Are Finding It Harder to Afford Some Policies and Care With Dealing With High Deductibles And Narrow Networks…
It was just recently reported in a study that HCA has the highest mark up rates of hospital systems in the US, well look at the money they need to finance those stock buy backs as the two kind of go hand in hand. On top of that HCA just bought a bit physicians group, Pacific Partners Management Services, Inc. in the Silicon Valley area, Santa Clara and terms of the transaction were not disclosed. In addition HCA and Humana are battling out a contract and as you know Humana is up on the sale chopping block currently so keep your eyes open on that story. Humana does some stock buy backs too but nowhere near what the bigger insurers do.
With Humana Up For Sale, What’s the Impact of the Medicare Risk Assessment Re-Run for Said Medicare Fraud? It’s a Big Potential Monetary Exposure For Humana and Other Insurers…
I don’t know, maybe in addition to other questions asked when being admitted, maybe we need to start asking for profit hospitals “what part of our bills go to finance stock buy backs”…you think? HCA also wants to be in the urgent care business too.
HCA Holdings Buys CareNow Urgent Care Centers in Dallas Fort Worth Area of Texas
HCA To Pay $1.45 Billion To Take Over Ownership of Seven Hospitals, and 13 Ambulatory Centers In Denver
Also remember this big IPO? I don’t know if their IPO still holds the top spot or not but this was a couple years ago this took place.
HCA (Hospital Corporation of America) Pulls Off the Largest Private Equity Firm Offering IPO in US History of $3.8 Billion
So hold on to your hats and know that HCA will be doing what they need to do to keep the costs rising, have to finance those expensive stock buy backs. BD
According to the firm’s calculations, HCA could drive roughly 9 percent earnings upside via share repurchases by the end of 2017; the company has a three-year capital spending plan of $7.7 billion in place.
HCA Holdings, Inc. operates hospitals. The Company operates acute care hospitals, outpatient facilities, clinics and other patient care delivery settings. HCA operates hospitals in the United States and the United Kingdom.
http://www.streetreport.co/technical-insights-on-hca-holdings-inc-nysehca/16046/
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