Emerging Healthcare Solutions, Inc. (Pinksheets: EHSI) reflected on a new Henry J. Kaiser Family Foundation www.kff.org study that reports that the relentless progression of new and expensive medical technology, combined with entitlement programs like Medicare and Medicaid, further compounded by an aging population, have created a "perfect storm" of costs that will consume well over half of all federal spending between now and the turn of the mid-century.
A constant stream of breakthrough technology that can save lives is an expectation in our society. But in America we also have a patent system that’s part of the U.S. Constitution. Therefore, if you need a patented lifesaving drug or treatment, you must, by law, pay whatever price is demanded by the patent holder. Your need, even in a life or death situation, doesn’t entitle you to have that drug or treatment unless you can negotiate mutually acceptable payment terms. Neither your insurer, nor the government, has very much leverage to lower the cost of patented technology.
Recent political developments coupled with upcoming Congressional elections persuade many experts to believe that any meaningful health care cost controlling legislation is unrealistic. In light of this, healthcare investment is seen by many to be a place for potentially high gains as opposed to other lackluster opportunities.
Accordingly, the ongoing healthcare industry boon could be beneficial to many sector players such as Quest Diagnostics (NYSE: DGX), Covance, Inc. (NYSE: CVD), Inverness Medical Innovations (NYSE: IMA) and Pharmaceutical Product Development, Inc. (NASDAQ: PPDI).
Emerging Healthcare Solutions, Inc.