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.
Follow David on Twitter: @MotleyDavid.
David Williamson and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.