Business
Analyst downgrades managed care
NEWS IN BRIEF — Posted Jan. 19, 2004
A prominent investment analyst started the new year by downgrading the stocks of managed care companies.
In a series of reports, Goldman Sachs analyst Matthew Borsch said the large profits managed care companies had in 2003 would force them to reduce the rate of increases in their premiums. That, in turn, will drag profits down, Borsch said. Managed care stocks went down Jan. 5, the day Borsch issued the reports.
Borsch said large companies such as UnitedHealth, Aetna and Anthem Inc., the latter of which is in the process of buying WellPoint Health Networks, may fare better. He also identified WellChoice, which owns Empire BlueCross BlueShield of New York, as being well-positioned to handle any industry profit downturn.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/01/19/bibf0119.htm.
