Reform in the USA: Health of the States

HEALTHCARE

As uncertainty in US healthcare reform begins to diminish, Daniel Mahony and Gareth Powell, healthcare managers at Polar Capital, look at the potential for further regulatory reform

The healthcare sector has lagged the performance of the broader markets over recent months. While the uncertainty related to US healthcare reform diminishes, near-term structural concerns are still an issue – namely reduced healthcare utilisation, potential for government pricing pressure and the prospect of further regulatory reform. Despite these concerns, the underlying long-term fundamentals for the sector have not changed and remain positive – namely, an ageing population in the developed world and GDP growth driving increased healthcare spending in emerging markets. Healthcare u...