Opportunities in the medtech sector

Time to buy some more

Every crisis presents opportunities.

The Center for Medicare & Medicaid Services or CMS is a powerful agency.

It dictates the reimbursement rates and rules for medical procedures, equipment, and supplies.

When CMS changes how much it is willing to pay for a treatment or a product, it directly impacts the revenues and profit margins of the companies supplying the healthcare industry.

We saw this when we covered Semler Scientific in the past.

So when you buy a medtech company that is selling their product to hospitals and physicians, you have to take CMS into account.

So the revised rules from CMS that were published over the last 2 weeks, dropped a bomb on part of the health care market.

For some, that means a crisis, but as an optimist, you always need to look for opportunities.

So we are buying.

Let me explain through first principles and unit economics.