RHC takeover effects, page-27

There are thousands of little opportunities to spark a commercial take up.

And that's why I am confident this thing will be a success (pending another company offering a superior product or getting better traction in the market) and why I will be picking up some cheapies at this price.

The beautiful thing about health care, is that doctors are scientists who are constantly reviewing and refining their models of care.

Likewise, administrators know that there are only finite resources.

Hospital activity and medical inflation in first world countries always exceeds the growth in revenue to pay for it. So at some point - taken to an extreme - health costs will consume all.

People who manage theses issues know that need to be avoided through that combination of budget controls and local innovation. They also need to deal with workforce and distribution issues.

So the game is better quality outcomes, using the same resources. More outcomes using the same resources. Or even more with less. Better targeting of resources where need is greatest. Endless innovation in iteration.

You can already see HMDs products enables models of care to be developed that are superior to current alternatives. Other clinicians will emulate those better models and will innovate again.

These things win out in the end but have to battle again inertia (because change is hard and upfront costs require an investment mentality).

And beyond outcomes; value for money and the better management of finite resources - people like HMDs products. Some clinicians (who are very strong advocates in that sector and beyond) love it. Reading between the lines, people like those who they work with from HMD.

So sure, we might get diluted a bit more and it would be better if that didn't happen. But we can grab some cheap shares on the upside while we wait for it to all click.

DYOR.