Healthcare Divide: Insurers vs. Consumers

The reputation of healthcare stocks as a shelter in stormy times is holding up,as long as you don’t rely on consumers.

Orange County’s big healthcare stocks largely are split between those that sell to hospitals and doctors with reimbursement from insurers and those that cater to

consumers or doctors doing elective

procedures.

It’s not hard to figure out which group is doing better.

Those that sell to healthcare providers with insurer reimbursement are holding

up because of the steady nature of their businesses.

Companies that sell to consumers or for elective procedures have been among the hardest hit stocks this year.

“Healthcare is an expenditure that most people think should be paid by somebody else,” said Dennis McCarthy, a managing director with B. Riley