Saturday, January 1, 2011

$40 Billion is about to hit the Healthcare Sector I am always ahead of the game, awaiting the next BIG opportunity. I did it in the era, the Real Estate boom  and the current Gold Rush. Now it's time for a healthcare tidal wave, get in now while it has yet started.

The Obama administration has led us into richness to be had if you are wise enough to see it before it begins or even while it's happening. For me, this is what I live for, follow the trend. This time I am about to lead the trend into the healthcare richness. This will be one of the most profitable sector one could ever imagined during their trading days. Embrace it and find the stocks that will lead the way in this sector.

Our healthcare system is about to undergo a revolutionary change and the U.S. government is putting up $40 billion of it to ensure it goes smoothly. A small group of companies set to benefit from this in a big way.

Most people have heard of the change to the healthcare system but, not fully aware or understand it's ramifications. The initial changes the White House made were found in the stimulus package. That bill, the $787 billion American Recovery and Reinvestment Act, contained nearly $20 billion in direct federal funding for a new type of medical technology.

In addition to the federal funding, Medicare-- the single largest player in the healthcare arena will add billions more in incentives for doctors and hospitals that purchase and implement this new technology.
With this being said, federal outlays for this new technology,including direct subsidies and incentives, will total nearly $40 billion; with hospitals and doctors offices to spend tens of billions more.

Digital Medical Records is the technology I am talking about and what we will come to hear of frequently over the years to come.

During the last week of July 2010, the Obama administration released a detailed five-year plan for moving health care providers to electronic records. The plan called for a series of steps which clinics and hospitals must meet to demonstrate they are taking steps toward meaningful adoption of the technology. A tremendous amount of medical interest groups have cited the need for greater flexibility, but most are in favor of using the new digital systems.

Doctors' offices and hospitals will be eligible for federal money to help defray the costs of the new systems, which can run into millions of dollars for larger hospitals.

Hospitals can be paid up to $4 million and an individual doctor can receive up to $40,000.  That's where it lies. The sticker is the providers who don't have the system in place by 2015 will face cuts in Medicare payments. Time is ticking since the bill has been passed, the law has been signed, checks have been cut and the rules have been issued.
With this being said my focus and recommendation will be MDFI as our emerging company and the spotlight to be shine on MDRX.


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