In this clip from The Call @ Hedgeye, Healthcare Policy analyst Emily Evans discusses Clover Health Investments, Corp. (CLOV) and illustrates the current base case for managed care with Hedgeye CEO Keith McCullough.
“Clover does not have any cost control, so all that pressure that providers have for increase labor cost and increase supply cost, they can fasten on to Clover. This is why they had to do the deal and it illustrates it’s much worse than they thought. They are basically the gold window for providers that they contract with,” notes Evans.
“It’s worth watching Clover because you can see that it is the worst base case for all of managed care. $5.75 is too high for a $2 stock at best.”
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