In this clip from THE PITCH, we give you an inside look at how a research analyst's high-conviction stock idea becomes a manager's winning position.
Watch below as Health Policy analyst Emily Evans pitches Hedgeye CEO Keith McCullough on Universal Health Services (UHS), Evan's new Short position.
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Emily Evans: Labor costs in Healthcare (like everywhere else) have gone up, especially low wage earners who happen to populate behavioral health part of the system, which is about 45% of UHS business.
The other general medical hospitals are seeing inflation go up pretty significantly on the wage business.
The problem is that their payments are predetermined through contracts with the Federal government, sometimes as long as 18 months in advance.
So as their wage expense goes up, their reimbursement really has trouble keeping up and they get squeezed.
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