Trump’s uncertain stand over affordable care act to impact medical device majors
The US President Donald Trump has affirmed to replace the affordable care act (also known as Obamacare) without informing precisely what will replace it. Until the new administration clearly spells out its policy goals, it remains unclear whether the number of Americans without insurance will decline. The decision has led many medical device juggernauts to seriously think over their business policies. GE Healthcare is one such medical device player that has admitted that it will impact their business. Trump administration’s decision has the potential to delay or alter plans of GE’s customers to purchase costly hospital equipment such as mammography systems. If implemented, the sales of GE Healthcare in the US will bear a huge impact, but the good news for GE Healthcare stakeholders is that GE’s healthcare business enjoys a global presence and its forecast was fairly upbeat for non-U.S. businesses. The issue matters for GE healthcare, which is the third-largest business in terms of sales. The changes in the American healthcare policy might be the biggest issue for investors in the healthcare sector to follow this year. GE gives credence to the notion that investors will be better off if those changes come sooner rather than later.
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