Shift in societal thinkingThe Covid-19 virus is triggering cancellations of conferences, meetings and other gatherings to prevent the spread. It will also cause a societal rethink towards visiting hospitals unless you have a need to visit. It used to be that the real danger of visiting hospitals arose from medical errors. Now, however, hospitals will be viewed as places where the Covid-19 virus is most likely to be found.
The Covid-19 virus will instill the greatest fear in people associated with COPD because they are the most vulnerable to succombing to the virus should they be catching it. Their thinking about attending a hospital, even for checkups, will shift for fear of being labelled a suspected carrier and placed in isolation with hundreds of others, then catching the virus and succombing to it.
If the COPD is stable where oxygen assists are prescribed, then the "hospital at home" and "home isolation" will become the treatment of choice for the health care provider and patient. This change in societal thinking will likely become entrenched in the next few months as Covid-19 spreads. "How can we slow viral spread and reduce the mortality rate?" will be the repeated themes. Both themes will point to Viemed's model of home care.
In the very short term, Viemed's model may even provide short-term relief to potential overcrowding at hospitals as they discharge COPD patients to make room for a possible influx of suspected Covid-19 patients, some of whom will need the oxygen at the hospital.
The proposed H.R.4945 - Safeguarding Medicare Access to Respiratory Therapy Act of 2019 will become part of 2020 candidate platforms for either party as they educate society about the "hospital-at-home" solution for reducing Medicare costs.
Even many RTs who work at hospitals will discover that their children are being ostracized because
of their work with Covid-19 patients. The RTs will look for positions outside of the hospital setting for the sake of their own children. Again the Viemed model provides an opportunity for them to work in their field but avoid the hospital setting.
In the short-term and the long-term, Viemed is well positioned as a growth opportunity. Its PE multiple will likely grow faster than its EPS as investors look for opportunities within the shift in societal thinking.
With the recent dip in the share price, timing for this long term investment opportunity could not be better.
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