Linked to the Pharma thread, this is a general discussion thread for news and views on the UK listed healthcare sector.
As with Pharma, the macro picture is one of strong underlying demand drivers driven by an ageing population set against structural pressures for reform within the healthcare market, led by developments in the US, leading to the expectation of severe price competition. Some niches of this sector are in rude health, others are more troubled.
Southern Cross Healthcare illustrates some of the issues for the Nursing Home sector, the consolidation of which (under PE ownership) has faltered due to the credit crunch as it tended to rely on a "sale and lease back" business model which, in turn, was dependent on low interest rates and rising property prices.
