Takeaway: We have added 10X Genomics (TGX) and Guardant (GH) to Long Bias List

Call Invite | Position Monitor Sept. 17, 2019 @12:30 PM ET | AMN, DVA, DXCM & Utilization Trends - 09.10.2019 Position Monitor

Call Invite | Position Monitor Sept. 17, 2019 @12:30 PM ET | AMN, DVA, DXCM & Utilization Trends - gh claims

Live Q & A: Health Care Position Monitor, Recent Research Updates, Q&A

Date: Monday, September 17, 2019  @ 12:30 PM ET - Add to Outlook Calendar

Link to webcast and slide deck:

https://app.hedgeye.com/feed_items/77756

 We are adding Guardant and 10X Genomics to the our Long Bias List

AMN -  Conference commentary this week on increased utilization comes as no surprise given what our labor algorithm has been telling us for months. The labor market for nurses has been tight and continues to represent a tailwind for AMN.  We've assembled the a number of data series that point to accelerating demand into year end.

DVA - The American Kidney Fund is threatening to leave California in January if Governor Newsom signs AB290. They believe the bill is in conflict with the OIG's 1997 Advisory Opinion. To accomodate the AKF's concerns, the effective date of the bill is tied to the issuance of an updated OIG Opinion. There is one school of thought, articulated best in Florida Blue's lawsuit against DVA, that the AKF's CPA program won't pass muster with the lawyers. In that case, a new opinion could affect CPA throughout the U.S. At Capital Market Day this week, DVA indicated that the AB290 represented a $25-40MM headwind; if applied nationally the number could be $150-$250MM.

DXCM - We've been tracking medical claims for interpretation of continuous glucose monitor data along with app downloads.   Comparisons are getting tougher from here and through 1Q20.  The market freaked out on management commentary about "tough compares" but it may have just been rotation away from momentum.  

Health Care Utilzation - We received a few inbound questions on utilization given the commentary out conference appearances by ANTM and UNH and some providers such as THC, which has been a key theme of ours for 2019. We use Health Care labor data from BLS, JOLTS and ADP statistics in our Health Care Labor Demand model which overlays well to provider results. Good news for providers, less so for the MCOs.

 (Programming Note: There will be no Position Monitor Call on Monday, Sept. 23rd due to the Hedgeye Cares annual golf tournament at Wee Burn County Club. Contact Sales@Hedgeye.com if you would like to participate.)

Thomas Tobin
Managing Director


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Emily Evans
Managing Director – Health Policy



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