At its current price RHC is looking a bargain. If I had some...

At its current price RHC is looking a bargain. If I had some cash (which I haven't) I'd definitely buy some. It hasn't been this price since December 2014, even it's yield is starting to look good.

Did anyone see Four Corners last week?

When it showed the graduation ceremony with the surgeons of tomorrow, it pointed out that most of them will be dependent on private patients, not Medicare patients. It also pointed out that If current trends continue private patients will be fewer and fewer in the future. Another interesting point the program made was that some wards in private hospitals are completely empty. Affordability, I think is the biggest headwind for RHC.

It's tailwind is the aging population and also I'm sure the government is going to put the private health industry under the microscope. Next April all privately insured people are going to get either bronze, silver or gold policies, depending on how deep your pockets are. The government can't let this industry shrink to nothing. Over the coming years I can see private healthcare being much more regulated. If the banks at present are being dragged over the coals then it's only time that this very important sector gets the same treatment. The public health system won't be able to treat everyone and in time will become more rationed. As Joe Hockey said a few years ago "the age of entitlement is over". Private healthcare has to be affordable, or else we're going to have a lot of old sick people in society.