Getting Rich From Obamacare
Posted at 10:30 a.m. on Nov. 1
Adam Davidson looks at how President Obama’s health care reform law is churning up new economic activity in the health care sector and will ultimately produce some very successful companies.
“The economic assumption inherent in the law is that the government can cut costs by shifting the incentives of health care providers. The existing system is built around a so-called fee-for-service model… The Affordable Care Act seeks to pivot toward what’s called a value-based model, one in which plans and providers compete on price and quality rather than volume.”
“So far, hundreds of existing companies have adapted to take advantage of various A.C.A. incentives; others are newly formed. Some are small…others are behemoths… There are so many new or redesigned companies, in fact, that it’s clear that many will have to restructure their approach in the competitive market… Which companies will get very, very rich is hard to predict.”