Reading an article about hospice care, The Motley Monk thought it might be time to consider investing in companies providing hospice care. They're not in their infancy but have one heckuva revenue stream that Obamacare's expansion of Medicare and Medicaid will only fuel.
To enroll in hospice care, a two doctors certify a patient's life expectancy of six months or less. However, the Washington Post reports, the number of "hospice survivors" in the United States has risen 50% between 2002 and 2012. More importantly, for investors, the ~$150/day cost/patient for routine care is not contingent on the type of care provided (e.g., an RN, LPN, nurse practitioner, or other). As a result, the average profit/patient quintupled in 2012 to almost $2k/patient. That's quite a revenue stream!
In 2012, "hospice care" was a $17B industry dominated by for-profit companies. But--and this is crucial from an investment viewpoint--$15B of the cost of hospice is paid for by...yep...the U.S. government through Medicare.
Those hospice care providers may reap very "Big K" to savvy investors! Do the homework and share in the rewards.
Let the discussion begin...
To read the Washington Post article, click on the following link:
"Hospice Industry Games Medicare to Make Billions."