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alstry (35.70)

Healthcare Hit!!!

Recs

13

January 12, 2009 – Comments (3)

From CalculatedRisk:

"This year will be challenging for our entire industry, as many drivers of our business remain uncertain," said Jack Cumming, Chairman and Chief Executive Officer. "The severe and rapid economic downturn, result[ed] in a decline in hospital spending ... we witnessed an unprecedented decline in demand for capital equipment at the end of the quarter ... Hospital systems across the country have responded to tightening access to capital by restricting capital expenditures, implementing tight spending controls and reducing personnel."

Alstrynomics warned you this was coming.  More and more losing their jobs.  Fewer and fewer can afford healthcare.  Revenues to hospital systems evaporating along with everything else.  Gold crashing.  Oil crashing.  Welcome to the Alstrynomic concept of concentric contraction......there have been a few blogs on the subject in the past.

You should be on notice...if you are not profiting....hopefully you have protected yourself.  The ride will be a doozy.....and when this bottoms out.....expect deals like you have never seen before.

Concentric Contraction has arrived and is hitting the shore with full force.  The only other major sector left is government......other sectors are in a depression or almost in a depression(10% drop from peak to trough) we could have millions of layoffs in government alone...even factoring the Obama plan.......

the impact will be profound....but hopefully you are prepared......if there can even be such preparation.

 

3 Comments – Post Your Own

#1) On January 12, 2009 at 5:09 PM, dwelllewd (28.10) wrote:

A family member is a doctor in pricate practice.  She told me she has seen a huge rush in the last few months building up to year end.

I understood her concern when she told me she soon realized this is not the result of winning business through better service, but instead the result of people using insurance while they still have it.

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#2) On January 12, 2009 at 7:48 PM, alstry (35.70) wrote:

Cessna Aircraft Co. told workers Monday that it will lay off an additional 2,000 employees across its facilities, saying the job cuts are necessary to ensure its long-term stability and success.

"These are particularly difficult times and it is very painful to lose so many great team members, and unfortunately we must take these steps to protect the future of our company," Mr. Stangarone said in a telephone interview.

It looks like doctors and hosptials are not buying as many small aircraft.  Cessna has reduced its workforce by 20% in recent weeks.....it looks like management doesn't see a recovery any time soon.

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#3) On January 12, 2009 at 7:51 PM, alstry (35.70) wrote:

Cost Plus is shuttering a bunch of stores around the country....now this.....

Shane Co., the family-owned jewelry retailer with 23 stores in 14 states, sought bankruptcy court protection blaming “disappointing” holiday sales and a “grim” outlook on the deepening U.S. recession.

The 38-year-old company, based in Centennial, Colorado, listed both assets and debt of $100 million to $500 million in Chapter 11 documents filed today in U.S. Bankruptcy Court in Denver. Report this comment

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