Sun Healthcare Group Inc SUNH

Some help from govt.

[investology]

"U.S. government's Medicare program proposed payment cuts to reimburse nursing homes that treat more than 1 million of the nation's elderly." (Reuters). This gives an opportunity for SUNH to gain by saving about 770 mil in 2009. However, SUNH claims this cut may not be sufficient enough.
It might receive further and more favourable cuts if the democrats are brought into power (pointing to Obama). The price target was raised from 17 to over 18.

[buttonwood88]

I'm not sure if I'd be singing the praises of the Democrats just yet.. after all, it could mean more regulation and if it gets the reasonable earnings range treatment that could mean a hamper on a the great growth potential of this company... Neither Obama nor Clinton are particularly pro-business and increased public scrutiny of the profitable healthcare industry isn't so nice

[mart33]

Unless the democrates enforce seroius price cielings for these type of healthcare companies, i doubt Sun will suffer very much. Even if the amount that the company charges for its services are capped, im positive that the company will be able to make that up in volume. There are $71 million baby boomers due to retire in the next decade, and many of them will need Suns services.