Perspectives Blog

The importance of being transparent

Harlan Sonderling, CFA, Senior Healthcare Analyst | December 2, 2013

Transparency is emerging as a powerful force in improving healthcare outcomes and increasing access to care. The growth of consumer financial responsibility is now estimated at 41% for large corporate plans. Consumer education has never been more important in healthcare than now. President James A. Garfield survived an assassin’s bullet in 1881, only to die several months later of complications from the infection that developed from his doctor…

Specialty pharmaceuticals – The fastest growing category of healthcare spending

Harlan Sonderling, CFA, Senior Healthcare Analyst | January 27, 2014

…mplex industry has developed to manage the delivery and costs of the therapeutic innovations in specialty pharma Healthcare payers are focused on managing specialty pharma spending, their most rapidly growing medical cost The accelerating pace of change and disruptive therapeutic advances create significant opportunities across healthcare delivery Pharmaceuticals are central to the effort to improve medical outcomes and control medical costs. Re…

M&A in healthcare – Out with the old, in with the new?

Harlan Sonderling, CFA, Senior Healthcare Analyst | March 31, 2014

…rived), debt-fueled revenue and earnings growth has been prized. Similar acquisition sprees are ongoing in other healthcare subsectors such as managed care and pharmaceutical distribution, though none with the tax inversion strategies prominent in specialty and generic pharmaceuticals. Nothing above is boasting of our recent investment success in deal-driven specialty and generic pharmaceuticals (or other healthcare subsector) investments, nor to…

Death, taxes and Medicaid expansion

Harlan Sonderling, CFA, Senior Healthcare Analyst | September 8, 2014

…y premiums from the state. The health plan is responsible for providing for all or most of the recipient’s healthcare needs. The plans accept the risk of managing total costs, subject to negotiated adjustments for developments like the expensive new hepatitis C medicine. A small minority of Medicaid managed care simply provides administrative services and healthcare provider network access to the state, which assumes all the risk. About 60%…

Obamacare’s insurance exchanges

Columbia Management, Investment Team | December 9, 2013

…f from having to buy insurance through the law’s new exchanges. Insurers and some states seeking to bypass healthcare insurance exchanges Less discussed around the difficulties in establishing public health insurance exchanges is the promise of private healthcare exchanges, that is, the transition of employees from traditional (institutionally) self-funded or stop-loss insurance plans to insurance exchanges sponsored by institutions – empl…

Antibiotic resistance – What it means for drug manufacturers, hospitals and diagnostic companies

Columbia Management, Investment Team | May 12, 2014

Overuse of antibiotics has led to new classes of “super bugs” that are resistant to current or traditional antibiotic treatments. Legislative and economic incentives are driving innovation and adoption of new technologies in the antibiotic resistance category across the investable healthcare spectrum. We anticipate increased new drug development and improvements in the identification and treatment of bugs and “super bugs.” By Aaron Reames, Wal…

Second quarter U.S. corporate earnings wrap-up

Tom West, Director of Equity Research | August 18, 2014

Non-cyclical sectors slightly out performed cyclical sectors during the quarter. In technology, the U.S. is improving, Europe is still not strong and developing markets lag. The healthcare sector improved, but it is still a question mark for the second half of the year. As the economic recovery matures, we have seen a fairly consistent pattern in quarterly earnings: estimates come down during the course of the quarter, and then beat the “lower…