Healthcare is difficult as an industry unto itself, as a political issue, and as an area to invest in. We revisit Davita Healthcare by speaking with a bull who argued that we were missing pieces from the puzzle last time we covered the story. And as we discuss, it becomes clear that the messiness around healthcare may be with us for a while, and one way or another it may create opportunities for anybody who can understand it fully.
Topics covered
3:00 - The nature of DaVita's moat and the dialysis industry, and the captive nephrologist 7:15 - The steady state of demand 12:00 - How does the pricing situation make sense? The insurance company put 18:00 - The modeling that the insurance companies, the government, and investors can do in the dialysis market 22:00 - What is the political risk to this situation? 25:00 - Shouldn't we be worried about the balance sheet? 33:00 - Where does this go wrong?