Thanks for this insightful and welcome discussion! Institutions...

Thanks for this insightful and welcome discussion!

Institutions and investors will pour into the health care sector because of the long-term potential, driven by favourable demographic and socioeconomic factors. Total health care spending in Australia - derived from government, insurance and private funds - amounts to a pie so lucrative and continually expanding that it is impossible to ignore. Projected returns are reflected in high earnings multiples, which dwarf every other market sector. Furthermore, the defensive nature of this industry allows it to perform (and outperform) regardless of economic cycles, consumer sentiment, exchange rates, commodity prices, etc

Referring to the private health insurance (PHI) rebate, I agree that it would be impossible for the government to simply remove this. It remains a major incentive for middle income households to maintain PHI, and any attempt to withdraw this would be political suicide (aside from the fact that our public hospital system would collapse). Even the imposition of a $7 GP co-payment drew hostility from many segments in the community (despite the desperate need for increased government taxation and revenues). The government has no legal obligation to preserve MPL per se, but it does have an moral obligation to not undo the last forty years - where we have universal health care, the access and standard of which is (currently) the envy of the world.

Sorry for the long text, however I have attempt to keep it as concise and uncomplicated as practicable.

(Disclosure: MPL is technically a financials/insurance stock, but I have broadly referred to it as a health care stock for convenience.)