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The Survey Says…

Headlines latch on to 5% and $20k, leadings numbers from the 200+ page annual Kaiser Employer Health Benefits Survey. Forbes, NYT, Bloomberg, Health Affairs, and the WSJ all take this angle. The press is warranted. Healthcare costs continue to grow at 2x inflation and annual premiums for family coverage crossed $20,000, more than a mortgage in the midwest. The survey carriers weight. Employers are the largest purchasers of healthcare in the US, commanding budgets that approach $1T, larger th ...

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My Lehman Brothers Experience

In September, 2008 I sat alone sipping a juice in the open town hall area of a Goldman Sachs office. My eyes were fixed on a freshly printed 4-page report from CEO Dick Fuld on the status and future of Lehman Brothers, capital positions, $600B+ in assets, tangible book value per share, value-at-risk, etc. The $4.00 share price, many multiples lower than the 52-week high, tempted me into a modest 400 shares. People were scared: "Be greedy when others are fearful and fearful when others are greed ...

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September’s Index

This month's index, inspired by the Harpers index, touches on charity care, gross margins, stock valuation metrics for three healthcare firms, sample UK health costs, algorithms, machine learning, and big data (just kidding on the last 3). The cost of charity and other uncompensated care as a percentage of total revenue at HCA hospitals in 2018: 7%. In 2010: 6%. Income as a multiple of federal poverty limits required to access charity care at HCA hospitals prior to 2018: 2x. In 2018 ...