Another bruising quarterly report for OHI who continues to struggle with operator profitability and the SNF industry in general (IMHO) … i was seriously considering rebuilding my position and was carefully reading the earnings report / conference call … here is my post to Seeking Alpha this morning connected to Brad Thomas’ post on OHI report https://seekingalpha.com/article/4118906-just-another-day-paradise-omega-healthcare
I was seriously thinking of adding to my OHI position which i have reduced to about 25% of its early 2017 size, but … in the earnings call transcript, there was a political comment that precludes my further investment and i will work my way out of the position.
Quote: “Finally, the resignation of industry-friendly Department of Health and Human Services Secretary, Tom Price, raises the question of whether his successor will continue the largely favorable treatment of SNF industry issues strongly supported by current CMS administrator, Seema Verma, a potential successor.”
What is this? Without a friendly HHS secretary OHI business is at risk (and how was Price helping stabilize funding for SNF market)? … weakens my confidence in OHI executive suite.