Joe Biden plans on spending a lot of money as President. Putting politics aside, be you for or against his plans, astute investors can “follow the money” and latch on to some potentially strong stocks. An old mentor used to say, “when there is money in motion, there is money to be made.” It’s safe to say, Uncle Sam spending trillions of dollars is the ultimate example of money in motion.
Understanding where the money is going to be spent is the first step for investors. It’s sort of like fishing. You have to fish where the fish are otherwise you won’t catch anything. Reading the proposed bill is our version of a fish finder.
We’ll start with the biggest portion of Joe Biden’s infrastructure plan:
$400 Billion on Home and Community Care for the elderly and people with disabilities. (1)
According to the American Action Forum (AAC), “An aging population and the increasing prevalence of chronic conditions will drive up demand for long-term care services, including assistance with the activities of daily life. But the supply of caregivers will not be enough to meet the need.” (2) AAC’s Tara O’Neill Hayes says Americans needing long-term care could double by 2030.
Combining $400,000 billion and growing demand means money in motion for the foreseeable future.
Here are five Home Healthcare companies that could benefit from demographics and President Joe Biden’s Infrastructure plan.
DaVita Inc. (DVA)
DaVita (NYSE: DVA) is a health care provider focused on transforming care delivery to improve quality of life for patients globally. The company is one of the largest providers of kidney care services in the U.S. and has been a leader in clinical quality and innovation for more than 20 years. Through DaVita Kidney Care, the company treats patients with chronic kidney failure and end stage kidney disease. DaVita is committed to bold, patient-centric care models, implementing the latest technologies and moving toward integrated care offerings for all. Through these efforts, DaVita has also become the largest provider of home dialysis in the country.
Amedisys, Inc. (AMED)
Amedisys, Inc. is a leading healthcare at home Company delivering personalized home health, hospice and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; recovery and rehabilitation after an operation or injury; care focused on empowering them to manage a chronic disease; or hospice care at the end of life. More than 3,000 hospitals and 59,000 physicians nationwide have chosen Amedisys as a partner in post-acute care.
Addus HomeCare Corporation (ADUS)
Addus HomeCare is a provider of home care services that primarily include personal care services that assist with activities of daily living, as well as hospice and home health services. Addus HomeCare’s consumers are primarily persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus HomeCare’s payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. Addus HomeCare currently provides home care services to approximately 44,000 consumers through 212 locations across 22 states.
Option Care Health, Inc. (OPCH)
Option Care Health is the nation’s largest independent provider of home and alternate site infusion services. With over 5,000 teammates, including approximately 2,900 clinicians, we work compassionately to elevate standards of care for patients with acute and chronic conditions in all 50 states.
The company provides therapies for the treatment of Anti-Infectives, Nutrition Support, Immunoglobulin, Chronic Inflammatory Disorders, Neurological Disorders, Bleeding Disorders, Women’s Health, Heart Failure and Specialized Therapies.
Oak Street Health, Inc. (OSH)
Oak Street Health is a network of value-based primary care centers for adults on Medicare. With a mission of rebuilding healthcare as it should be, the company operates an innovative healthcare model focused on quality of care over volume of services and assumes the full financial risk of its patients. Oak Street Health currently operates more than 80 centers across 12 states.
1 – https://www.npr.org/2021/04/01/983470782/by-the-numbers-bidens-2-trillion-infrastructure-plan
2 – https://revcycleintelligence.com/news/long-term-care-demand-to-double-despite-workforce-constraints