Beware the Oncoming Long Term Care Tsunami

America’s healthcare system is going through huge changes in preparation for the growing medical demands of the Baby Boomer generation. Over the next three decades, the United States will see unprecedented growth in its senior population as the Baby Boomer generation (born between 1946-1964) ages. Increases in healthcare demands will be seen throughout the healthcare industry, with the greatest impacts anticipated in hospitals, skilled nursing, assisted living, and residential care facilities.

Learning Your New ABCs for Medicare in 2020

The Medicare population is projected to increase from 54 million+ beneficiaries today to over 80 million beneficiaries by 2030 as the baby-boomer generation ages into Medicare. This expansion will bring changes to the Medicare population. First, the average age of the Medicare population will initially skew younger than in the recent past, but then grow rapidly older as the number and share of beneficiaries ages 85 and older increases.

Community Health Systems Bonds (CYH), 17% YTM providing High Yield, with Short Maturities

This week, Durig reviews one of the largest publicly traded hospital companies in the United States. Community Health Systems (NYSE:CYH) has spent the past few years paring down its portfolio of hospitals with an eye to retain those locations that are most profitable. The results of these divestitures are starting to be seen and the company has now put up two consecutive quarters of positive growth. In its most recent quarter results, one can see that same-store metrics tell a compelling story, especially in the competitive healthcare sector (see bullets above).

Sanders Looks to Increase the Scope of his Already Costly Healthcare Plan

Senator Bernie Sanders, the self-described Democratic Socialist, has been constantly and consistently attacking the American medical industry. The Presidential hopeful has long championed Medicare for all and has criticized the healthcare industry as being “insane and cruel.” Many economists fear that the staggering cost of Sanders’ single payer healthcare plan could cripple the economy.

Community Health Systems Bonds, Short Term, High Yield, Fixed Income Investment, Yielding 23% YTM

This week, Durig Capital looks at the healthcare sector to review one of the largest publicly traded hospital companies in the United States. Community Health Systems (NYSE:CYH) has spent the last few years rationalizing its portfolio of hospitals. The company is beginning to realize the effects of this strategy as evidenced by its same-store results for the second quarter (see above).