Health Care Stocks Ready for 2010
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As the stock market gains modestly on Bernanke’s assurances that inflation is well in hand, and that investors shouldn’t worry overly much about interest rate hikes anytime in the immediate future, it is time for many to turn their attention toward 2010. There are a number of possible plays for 2010, and The Street suggests that perhaps now is a good time to look into health care stocks.
It’s not just a good time for health care stocks because of the “health reform” going on. And don’t completely buy the complaints from the health care industry; the bill in Congress right now — the one that will require everyone to pay for coverage — isn’t exactly going to ruin things for the health insurance industry. Neither will having a public option by 2013 (if that actually survives). In the end, requiring everyone to get health insurance will probably be a good thing for health insurance and other health care companies. But that’s not why The Street things health care is a good play for 2010.
Electronic Health Records and money for health care
The HITECH act was passed as part of the stimulus bill earlier this year, and provides money for health care providers that make good use of Electronic Health Records. There are grants for companies (and even physicians) that make the switch. And, not only will it result in about $19 billion in funds for the health care industry, but it is also projected to provide billions in savings for these companies. And that means more profit (since health care has never been known to pass the savings onto the rest of us).
The Street figures that the following companies are likely to be among those to benefit in 2010:
- AllScripts
- Athena Health
- Cerner
- Eclypsys
- McKesson Corp
- Quadramed
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
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