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The landscape of the health care industry is changed greatly over the past year with the passage of the Affordable Care Act in a change coming up in Medicare payments.
Starts next week but one company has managed to come out on top it's not -- a 52 week high yesterday and again today.
Joining me now Alan Miller chairman and CEO of universal health services.
-- is on its hair.
A big piece of that Allen is behavioral circuses.
Right now so that's really were nursing expansion that -- the reverend Evan does really coming up.
A large part of it yes 70% and 70% of -- At one time it wasn't that -- we have two divisions and we're happy we're both.
Well they're both performing Trevor Wallace talk about affordable care and now the effects it's had an industry overall how the industry -- company cost control.
Something that was supposed to be addressed under the Affordable Care Act is it being addressed.
It really is an expansion of coverage.
And the big part of it is the 31 million people who haven't had coverage who will get coverage.
And it's supposed to come through the exchange views for the expansion of Medicaid.
And that's what we're looking forward to.
As you know there's been a little controversy over some of the states that are a little reluctant even.
Us 27 states they're -- set up the exchanges.
Seventeen aren't sure.
And they may have the federal government but there will be exchanges and there will be coverage well.
Yet it does he bring that out because in California where you have a lot of exposure they are 14 with an exchange.
Stated Texas is saying no we're not gonna go -- also of exposure in Texas as well also.
It's just a wait and see thing for you at this point -- well -- know.
Actually what's gonna happen is if your state doesn't set -- up the federal government was that in them.
-- will be in exchange but it's a question no whether the state wants to participate.
Might might guess Cheryl is that ultimately there will be participation.
Because there's a lot of money.
That the federal government is offering the states.
And you can -- in a close up to Christmas so.
They we'll take it and I'm confident there.
Let me ask you this -- one of the the fears and the concerns about companies.
That the company is beginning to dump retirees into.
Do you think -- -- -- that you could foresee happening.
Well I think there's going to be a question as to what employers are -- going to do.
We there's been a lot of conversation about small employers but big employers I just found.
Like ourselves we have 65000 employees we're gonna have to pay 65 dollars annually per head.
And -- -- over 400000 dollars so there's a lot of little hidden things in the law which we will find as it's implemented.
But as a company -- -- health services company obviously your not gonna make that change -- many other companies.
Will -- -- know this is not the only experience that's it that's -- interest -- us talk about sequester are you seeing right now.
An immediate effect of sequester and in the effect of the changes in particular -- Medicare right now.
There will be a 2%.
Reduction in Medicare as a result of this a question -- but that makes us try and be more efficient.
Which we think we are.
But yes that's happening on the other hand with a 31 million more.
Patients that'll be covered the reduction in our -- that.
That should be a very good -- Do you think that reform of the health care industry as it's happening out is there opportunity and that is their risk in math for you and and frankly for other hospital companies.
Well there's always opportunity to question of if you can be flexible there's a big transition in the industry and we're gonna stay up -- that we are.
Very attuned to what's happening.
And -- there's opportunity in change and is going to be a lot of change a lot of opportunity.
In the fourth quarter you had a bit of a contraction and revenue -- certainly be.
Earnings per share or watching your stock headset at the top here.
Another pitch to make high yesterday today do you do you feel overall that analysts and investors have moved past the issue of the affordable care -- they're looking at new things now with regards to your industry -- I think that the implementation is important to us because.
Investors have been thinking about.
31 million people who will now have coverage and when they come to the emergency room when they come to the hospital or they come to the doctor they will have coverage.
Consequently our -- that will go down because these people will have some way of paying such good.
Alan Miller it's always great to see you Allan thank you -- -- to have you in Syria right so.
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