UHS - Healthcare facilities to enjoy political tailwinds and returning volumes in 2021 - BofA

Bank of America turns bullish on healthcare facilities, expecting the potential for ‘some good political news in 1H’ to lift the stocks until utilization recovery that is ‘weighted towards 2H.’Despite pressure on volumes in 1H due to COVID-19, the ‘vaccine rollout, improving economy and supportive political backdrop’ should reverse the trend ‘on pent up demand and improved coverage,’ argue the analysts led by Kevin Fischbeck.However, according to the report, the margins will be a cause for concern with ‘lower acuity/ lower margin volumes’ returning amid pressure from higher labor costs and other expenses from a reopening economy.Citing the potential impact on smaller providers as government support wanes, the analysts expect the market share changes and acquisitions to continue in 2021 and beyond.Despite the persisting COVID-driven shift towards home-based care, the analysts argue that the return of deferred procedures to ‘offset COVID patient declines.’On political tailwinds, they cite the outcome of

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Healthcare facilities to enjoy political tailwinds and returning volumes in 2021 – BofA