A Little More On HCA – Thanks Duke Desk!

HedgeFundLIVe.com — Many of HCA’s hospitals are located in “high growth” urban and suburban areas with 9,808 beds and 38 hospitals in Florida, as well as 10,410 beds and 36 hospitals in Texas. On the company’s most recent earnings call Chairman Richard Bracken said that the company’s size, efficiency and diverse nature should promote future growth on the bottom line.

I like, as usual, the Duke desk’s reasons for owning the stock; particularly their expectation for sell-side initiations to be bullish and drive the stock higher (a la Cramer). Some analysts, however, are suggesting investors wait until August after the 6 month lockup period expires to buy shares. At that time another 383 million shares will be eligible for sale.  

The Fuqua desk also made a great point regarding physicians joining larger hospital-based practices. I think this point can be taken even further. With fewer independent doctors around it will be the hospitals that drive more and more healthcare decisions. Health Reform’s plan of having your primary physician better monitor your health decisions (preventive medicine) will mean that the hospital who employs that primary care doc has some significant influence on those decisions.

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