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URL:  http://boards.fool.com/gt-subject-re-still-a-good-buy-gt-author-10063993.aspx

Subject:  Re: Still a good buy? Date:  12/12/1997  11:10 PM
Author:  solberg Number:  31 of 40


> Subject: Re: Still a good buy?
> Author: MichiganNative Date: 12/12/97 8:06:17 PM (ET)
> No matter what kind of in-depth analysis you use, it
> isn't written in stone, but one thing is sure...no
> matter what the rest of the economy does, people are
> still going to require health care and food.

> I believe those two areas are more promising than
> anything else right now.

I appreciate your response, but I have to disagree. I do strategic planning for health care facilities for a living and have been in the field for more than 20 years. I think that you have to be VERY careful right now in this field. Managed care firms have been subscribing the healthy (for the most part). HMOs are just getting experience with Medicare and Medicaid and, as recent experience has shown, it is a risky venture for them. Physician groups are gaining and losing contracts on a daily basis. Hospital chains are feeling the backlash of having been too proprietary. Long term care chains are finding it harder to maintain margins in the face of lower Medicaid and Medicare reimbursement, as they lose private pay residents to assisted living (where they have to charge less in order to be competetive). Don't oversimplify healthcare. As in any industry, you have to find the good companies.

Just some foolish thoughts.

Best,
- Andy
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