Obamacare is seen as a long-term win for hospital stocks, which are struggling a little bit in the short term with inpatient admissions. Near-term struggles and long-term promise create an industry ripe for consolidation.
However, the first acquisition was a surprising name Vanguard Health Solutions. Shares popped 70% after Tenet Healthcare announced that it's acquiring the hospital operator for $1.7 billion.
In this video, health-care analyst David Williamson discusses why this buyout is a win-win for both companies, along with why investors need to continue to keep a close eye on the hospital sector.
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