Harvey and Irma

The recent destruction that hurricane Harvey and Irma has left on many states in the South has left many people, places, and infrastructure completely ruined.  Almost everything in different parts of Florida, as well as parts of the Caribbean is underwater.  With Harvey hitting the U.S, it has affected many of the health care companies within those areas.  It has affected hospital chains to medical technology facilities, as well as pharmaceutical chains.  "We estimate that the two storms (Harvey and Irma) could result in a procedural growth drag of ~30 bps for each week that hospitals are out of commission and/or patients are displaced," Matson said.  "We believe this impact could last anywhere from 2-4 weeks, resulting in an estimated 60-120 bps drag on U.S. procedure growth in 3Q17" (Needham analyst Mike Matson).   With all of this decrease and damage, I cannot even imagine how the patients and employees dealt with incoming patients in the middle of the hurricane. 

Pharmacies also were affected by the hurricanes.  Each chain, such as CVS and Walgreens, number percentages decreased in their income.  These hurricanes are not only affecting the hospitals physically, but financially as well.  It is terrible to see the hospitals in such destruction, but the cost to rebuild and resupply is equally as devastating.  The article also compares this to hurricane Matthew that hit Florida last October at a ranking of Category 5.  "Hurricane Matthew affected companies in different ways.  It cost Tenet hospitals an estimated $5 to $10 million and Tenet surgery centers an estimated $1.5 to $2 million, and cost Surgery Partners about $1.5 to $2 million, Ransom noted" (Analyst John Ransom).  This is only a few of the payments the state of Florida had to pay in order to rebuild.  

It is a terrible thing that there is nothing you can do about preventing the destruction of a hurricane.  It is hard to find a solution on how to keep everyone healthy and safe, when a lot of the destruction is in the hospitals and pharmacies themselves.  As long as the communities work together to the best of their abilities, that will keep everyone as safe as possible.  

http://www.marketwatch.com/story/how-hurricanes-harvey-and-irma-are-affecting-health-care-companies-2017-09-07