UK Markets closed

HCA Healthcare, Inc. (HCA)

NYSE - NYSE Delayed price. Currency in USD
Add to watchlist
243.25-0.61 (-0.25%)
At close: 4:00PM EST
Sign in to post a message.
  • D
    DAVID
    $CLOV conversation
    1/2
    So why would a company like $GOOG buy a company like $CLOV for at least $30/share?

    FYI, my opinions. Not inside information and not financial advice. This is an argument for a mutually beneficial business combination via acquisition.

    OK, so why would a company like $GOOG buy a company like $CLOV for at least $30/share?

    The bigger question is why one of the current big healthcare giants ($UNH - $430B MC, $ANTM $105B MC, $HCA - $76B MC, $CI - $72B MC, $HUM - $57B MC,) wouldn’t buy $CLOV first to prevent having to compete with Google? The fact is they may not even be in the discussions due to the strong existing relationships between $CLOV management and $GOOG, but they should do whatever they can, and pay whatever it takes, to make sure this group does not reunite.

    Well first, maybe “reunite” is not quite correct as in fact, they are already partners. Google was one of the lead investors that helped launch $CLOV.

    https://www.fiercehealthcare.com/technology/google-parent-company-invests-big-medicare-advantage-startup-clover-health

    So why would Google, a tech company, want to invest ad/or partner/acquire Clover, a medical insurance company? Here’s a few reasons:

    Clover Health is primarily a tech company. There’s a great interview with the CEO Vivek Garipalli.

    https://youtu.be/uLmXHEHNsZo

    This is definitely worth the hour to listen as it gives great insight into how the concept of Clover Health came to be and more importantly, where it is going. Of particular interest, Vivek talks about how this was developed as a tech company. They had such amazing technology and AI, which would develop into Clover Assistant, but there was a problem. The issue was given the current setup of the medical industry, there was no incentive in place for the end user (i.e. the medical practices) to spend any funds on software to make patient outcomes better and more efficient. As Vivek explains, they soon realized to find the market that would see the value in their technology, they would have to create that market. Sounds very similar to many tech companies that are ahead of their time.

    2)

    Google has been interested in using AI to reinvent the $3T US healthcare industry for many years.

    https://www.cbinsights.com/research/report/google-strategy-healthcare/

    Doesn’t this sound like something the team leading Clover would say:

    In a statement provided to Fierce Healthcare, a Google spokesperson said "Google deeply believes in the power of technology to improve health and wellness and we have increased our health investments across the company.

    Clover Health Mission Statement

    On a mission to improve every life, Clover uses its proprietary technology platform to collect, structure, and analyze health and behavioral data to improve medical outcomes and lower costs for patients.

    While they had created an internal Google Health division in 2018, they have since disbanded the division. It seems like many large companies, Google needs entrepreneurs to basically handle outsourced innovation. In many cases like this, once the group better identifies the opportunities, defines the market, and proves out a workable model, an acquisition makes sense for all parties. As CTO Andrew Toy said in an Oct interview, “I truly believed you had to be within the healthcare industry, and specifically a payer, to then build great technology and have the fulcrum to make a difference."

    As you can read in the links below or doing a quick Google search, while the division was dismantled, their appetite to be in healthcare has not diminished.

    https://www.forbes.com/sites/johanmoreno/2021/08/21/google-dismantling-health-division/?sh=8f056abe4011

    https://www.healthcaredive.com/news/google-disbands-health-unit-as-chief-departs-for-cerner/605387/

    https://www.fiercehealthcare.com/tech/google-previews-ai-dermatology-tool-to-help-consumers-identify-skin-conditions

    https://www.fiercehealthcare.com/hospitals/google-cloud-will-beef-up-hca-healthcare-s-clinical-operational-data-analytics-new

    He also was quoted on an Oct interview saying, "I took a bit of an unusual choice instead of founding a company that worked within Google Health, Amazon, or Microsoft. I truly believed you had to be within the healthcare industry, and specifically a payer, to then build great technology and have the fulcrum to make a difference." This is the thinking outside the box that large established companies cannot do. They need to let people like Vivek and Andrew create a successful model and then just buy it out.

    3)

    Clover has incredibly deep relationships with Google. I’m sure most of you already know CTO Andrew Toy, the genius behind the Clover Assistant, has already developed a startup company, refined the model, proved it out, and sold it to Google.

    https://www.businessinsider.com/googles-120-million-divide-acquisition-2014-10
    Clover Health, the technology-focused startup serving Medicare Advantage customers, just got another infusion of venture capital. The company is now valued at $1.2 billion.
    Clover Health, the technology-focused startup serving Medicare Advantage customers, just got another infusion of venture capital. The company is now valued at $1.2 billion.
    www.fiercehealthcare.com
  • s
    stocktargetadvisor
    $HCA
    Target Raised by Stephens & Co. Overweight USD 275 » USD 283
    Target Raised by Deutsche Bank Buy USD 275 » USD 306
    Target Raised by Citigroup Neutral USD 268 » USD 274
  • M
    Martin
    Fingers crossed for $270-$300 by years end... I think $HCA should branch out and buy $NBRV & $ASXC
  • J
    John
    At the quarterly earnings call it was announced the quarterly dividend would resume, at 48 cents which would be 1.92 annually, and I would expect this to be increased each year. HCA is a well run company.
  • c
    chip
    Based on the First Care Act, each hospital was to receive approximately 100,000 per bed. HCA has almost 50000 beds. That means they could receive 5 billion dollars if they indeed divid the money according to the original concept. Saw today that the first 30 billion was released to the hospitals in accordance with the amount of medicare funds received (not sure of the time period)
  • j
    joshua
    Huge gap from July 14 from 217 to 250. If this drops more tomorrow back to 200.
  • P
    Peter
    Is Wall St. ignoring the high debt of companies like HCA? It seems that companies with huge debt levels are being valued as if they have no debt.
  • C
    CID1000
    Dividend again in November?
  • P
    Peter
    60 Minutes story, last night, exposing how hospitals are gouging people and companies, drove up stock today. However, it will be short lived, as expose' will bring more regulation, and organized push back from companies. Hospitals are a very iffy business, look at their charts.
  • p
    paquin
    I couldn’t be happier with the daily emails I get from (http://Fairstox.com). They give me the best daily advice based on stock market news and help me make wiser decisions when it comes to investing. An absolute must for any investor!
  • R
    Rich
    Thanks for the thumbs down for the one individual who did this. Could this go back to $58? Sure, it could, however, I believe a vaccine will be announced in the next 6-8 weeks, and if that’s the case, people will buy this back to $100+ as people (the market) buy 6-9 months ahead. Vaccine would be in production by Feb/March of next year and so the stock would start reflecting that upon announcement with a huge bounce followed by a rise to over $100 by sometime in June.
  • T
    Tommy
    HCA is dominant in those parts of the country where the Delta variant is prevalent. I can't see how this will end well for them. Here in Florida, the Governor refuses to declare an emergency which would bring in Federal money and help. The last quarter's results were based on a false expectation that we were beyond the crisis, but nothing could be further from the truth. My advice is to sell.
  • T
    Tommy
    Now is the time to get those elective surgeries done, before the resurgence of the virus. This quarter should be OK, and maybe Q3 too. Q4 not so much.
  • M
    MemphisBBQ
    What is the short term future of HCA?
  • T
    Tommy
    Florida just allowed Elective procedures to go forward as of Monday May 4. Bed utilization is way down and there is a pretty good backlog of patients waiting for surgeries.
  • P
    Peter
    Why are hospital stocks up with Democratic win? Won't they regulate hospitals more, and limit their profits?
  • T
    Tommy
    I'm sorry, but what does near capacity with Covid-19 patients mean to you? I thought this was a bad investment when daily cases in Florida were 1-2K, and now we are in the 10-15K range? This price is not sustainable nor is their business model under this strain. SELL!
  • j
    jim
    Nice jump up in premarket
  • S
    Sean
    July 1st HCA begins to expand post-acute service through acquisition of Brookdale Healthcare Services. They will now have their own Home Health, Hospice, and Outpatient. These service lines will will be connected with current agencies and locations, along with expanding into other HCA markets that did not have a agency.
  • D
    David
    https://www.twst.com/news/hospital-hospital-facilities-america-research-team-member-matt-larew-tells-invest/
    I think HCA (NYSE:$HCA) appears likely to continue to look for consolidation opportunities. The hospital sector in general is much more consolidated, and that’s largely in the hands of many nonprofits.

    But in the last year, we’ve seen a number of fairly large-scale mergers among some fairly large hospital operators — like CHI Dignity, Advocate Aurora here in the Midwest. But the hospital sector is a little more consolidated.

    On the non-hospital side — think of home health and hospice operators — those are highly fragmented markets, so even the largest operators in the space own less than 5% national market share.

    So there is a much larger opportunity there, and we expect names like Amedisys (NASDAQ:$AMED), LHC Group (NASDAQ:$LHCG) and Encompass Health (NYSE:$EHC) to find smaller tuck-in assets that they can add to fill in their national footprint where it makes sense.”

    The demographic trends are clear:
    Matt Larew is an Analyst who joined William Blair & Company, L.L.C. in September 2012 and primarily focuses on health care delivery companies. In 2018, Institutional Investor named Mr. Larew a Rising Star for the All-America Research Team. Before rec
    Matt Larew is an Analyst who joined William Blair & Company, L.L.C. in September 2012 and primarily focuses on health care delivery companies. In 2018, Institutional Investor named Mr. Larew a Rising Star for the All-America Research Team. Before rec
    www.twst.com