In a research note released on Tuesday, Mizuho Securities analysts have reported that recent growth in both inpatient and outpatient services has exceeded even the highest expectations of investors. According to a survey conducted by Mizuho, outpatient volume experienced an impressive 8% growth in the second quarter compared to the same period last year, while inpatient volume grew by 4%.
This surge in services comes after UnitedHealth Group Inc. executives mentioned last month that older adults are now catching up on surgeries that were delayed due to the pandemic. Unfortunately, this revelation resulted in a significant decline in health-insurance stock values.
Taking into consideration the survey results from physicians and concerns regarding the growth of outpatient Medicare utilization, the Mizuho analysts made some adjustments to their price targets. They lowered price targets for managed care companies such as Centene Corp., Humana Inc., and UnitedHealth Group while increasing price targets for healthcare providers like HCA Healthcare Inc., Tenet Healthcare Corp., Universal Health Services Inc., and Surgery Partners Inc.
This shift in price targets aligns with the changing dynamics of the healthcare industry, highlighting the increased demand for outpatient services and the corresponding potential for growth in healthcare providers.
Overall, this research emphasizes the ongoing transformation in healthcare services and the importance of adapting investment strategies accordingly. As the sector continues to evolve, keeping a close eye on market trends and adjusting expectations will be crucial for investors seeking to navigate these changing times.