, Columnist
Health-Care Investors Are in Denial
The AHCA could very well become law, wreaking havoc in the sector.
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The U.S. health-care system is full of things that don't make much sense. A lot of them are extremely profitable.
One of these, recently highlighted by legendary short-seller Jim Chanos, is dialysis, a market largely split in the U.S. between two large firms, DaVita Inc. and Fresenius Medical Care AG & Co KGaA. If the Senate passes a health-care bill similar to one the House of Representatives passed last month, then it may become easier for private insurance plans to stop covering dialysis, cutting off a big source of profit for these companies.