Pharmaceutical Stocks in the Post-Trump Era?

Join Our Mailing List

By Vitaliy Katsenelson CFA

vitaly

Trumps Hates Them – We Love Them

 Originally written for Institutional Investor Magazine
 A few weeks after Donald Trump was elected president of the United States, he was asked about pharmaceuticals prices. With typical rhetorical gusto, he declared, “Pharmaceutical companies are getting away with murder.” Well, my firm has been increasing our allocation to those “murderers,” and despite Mr. Trump’s comments, we are very comfortable with our positions in the long run (which lies beyond what may end up being a very volatile short run).

Big Pharma

Pharmaceuticals companies check off a lot of boxes in our quality and growth dimensions. They are usually monopolies or oligopolies when it comes to their specific drugs; they have high recurrence of revenue; their business is not cyclic and thus marches to its own drummer; they have strong balance sheets and a high return on capital, and generate a lot of cash flow; they benefit from a significant growth tailwind as the global population ages (I aged just while writing this); and they enjoy pricing power (more on that later). Yet the pharmaceuticals sector as a whole has been decimated over the past eight months due to perceived political risk — first by pharma pricing critic Hillary Clinton’s “It’s in the bag” expectation of victory and then by Trump’s “They get away with murder” comments. We view the carnage created by the political risk as an opportunity to increase our exposure to this sector. Here is why.

President Trump mentioned that he wants the U.S. government — mainly, its Medicare program — to negotiate directly with drug-makers on price. His remark may create the impression that pharmaceuticals companies today charge the government whatever prices they want. That is not the case. Medicare covers prescription drug costs through a program known as Medicare Part D. Medicare basically outsources the negotiation of drug prices to pharmacy benefit management (PBM) companies such as CVS, Express Scripts, and UnitedHealth Group (a health insurance company that owns its own PBM). In fact, less than a handful of PBMs control this market and so exercise tremendous pricing power; thus the government is already negotiating with pharmaceuticals companies.

The Stats

Here are some useful stats about this market: As of the end of 2015, 290 million Americans had health insurance. Among them, 214 million had private insurance and 52 million were insured by Medicare. Medicare insures a lot of people; however, UnitedHealth — a company whose business model relies on paying as little as possible for prescriptions — insures 70 million Americans and thus already has greater bargaining power than Medicare.

But let’s say President Trump gets his wish, the law is changed, and the government bypasses PBMs and starts bargaining with Gilead Sciences, Amgen, and Allergan directly — the Trump take-no-prisoners approach. Let’s even assume that President Trump’s ingenious negotiating techniques result in a 20 percent concession on price. Since Medicare represents only 18 percent of the total insured population, the net impact on pharmaceuticals companies’ revenue would be 3.6 percent. That’s a small pimple that they’d be able to cover up by raising prices 4 percent on the remaining 82 percent of payers.

***

drugs

***

Europeans and Canadians

The reality is that the reason Europeans and Canadians are paying much lower prices for their prescriptions is that they have a single-payer system, and thus pharmaceuticals companies are bargaining not with four or five entities but with one: the government. At this stage, however, it is very unlikely that a Republican president and Republican-controlled Congress will move this country to a single-payer system.

If the U.S. starts allowing re-importation of pharmaceuticals from Canada and Europe — another threat made by our president — then American companies will simply start raising prices outside of the United States.

Finally, let’s remember an important but often forgotten fact: Donald Trump is the president of the U.S.; he is not its king and doesn’t have the powers of one. Although we expect his tweets and other remarks to create additional volatility, they will not necessarily have a symmetrical impact on pharmaceuticals companies or whatever other businesses he tweets about.

Assessment

We have taken advantage of price weakness and added to our positions in Amgen (analysis here), Allergan (analysis here), and Gilead (analysis here). We also bought some new positions. Stay tuned for next week, when I’ll reveal those names.

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

“What’s wrong with income inequality?”

“What’s wrong with income inequality?”

By Rick Kahler MS CFP®,

Do you think there’s nothing emotional about money?

If so, I dare you to stand up in a town hall meeting anywhere in the US and ask, “What’s wrong with income inequality?” There is a high probability that the responses that follow may have some emotion.

Emotional

Make no mistake, money is highly emotional. That emotion isn’t about the inanimate object, the pieces of printed paper that we carry in our wallets. It’s what we project onto money that makes it intensely emotional. And usually what we project isn’t about the money at all.

Consider, for example, envy and jealousy. On the surface, these emotions seem to signify we are not grateful for what we have and that the cure is to focus on what we do have. There’s an element of truth to that, but telling yourself to stop being jealous and instead be grateful probably doesn’t work for long. If you are like most of us, the jealousy is soon back.

The reason is that envy and jealousy are not about what we have, but rather about what we don’t have or we fear losing. Underneath envy is fear that I won’t get something I desire which is enjoyed by another. Suppose I am envious of a friend who lives in a bigger house. Underlying that is fear, perhaps a fear that I am failing my family by not providing enough space for them to live comfortably.

Underneath jealousy is also fear, but this fear is often masked by anger that someone else is getting something that is rightfully yours. I may be jealous of a coworker because they got a job promotion that I felt I deserved. Underlying my resentment of my coworker’s success is fear that my contributions to the company are not valued and that my job isn’t secure.

Similarly, I may feel jealous of someone who earns much more than I do. I may be resentful that they enjoy privileges, a lifestyle, or security that I rightfully deserve. Or I may believe that the money they have accumulated was wrongfully taken from others and that if they continue to accumulate wealth, mine may be next. I may fear for my very survival.

***

***

The  “one-percenters”

Such fears may drive a good portion of the anger toward the so-called “one-percenters.” If my physical and emotional needs are satisfied and I am happy with my life, do I care if someone else has more? Probably not.

But if my physical needs are not met, I am unhappy, and I feel that the money I am entitled to has been taken from me by those that have money, I care a lot. In fact, I can be rage-ful and jealous.

According to a January 17. 2017 article by Amanda Hirsh at unstuck.com, envy and jealousy can be a gift, a trailhead of sorts that can lead us to an unconscious fear. Once we uncover the fear we can often take concrete steps to resolve it, rather than wasting precious energy being stuck in anger and rage toward others.

Hirsh suggests that, the next time you feel yourself becoming envious or jealous, you consider it an opportunity to ask yourself three questions:

  1. What am I afraid of?
  2. What do I really want?
  3. Why do I want that?

Assessment

These are not easy questions to answer. It may be best not to consider them when you are already triggered and consumed by the emotion, but to wait until you are calmer and in a more reflective place. Then the answers may help you move past the jealousy and shift your focus to your own options.

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™8Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

 

Birth of “Addiction Medicine” as a New Discipline

The Need for an in Utero Diagnostic Assessment Prior to Delivery

By Michael Lawrence Langan MD

One thing is for certain.

When society gives power of diagnosis and treatment to individuals within a group schooled in just one uncompromising model of addiction with the majority attributing their very own sobriety to that model, they will exercise that power to diagnose and treat anyone and everyone according to that model.

***

***

Carl Sagan’s Baloney Detection Kit and the Birth of “Addiction Medicine” as a New Discipline: The Need for an in Utero Diagnostic Assessment Prior to Delivery — Disrupted Physician

***

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Product DetailsProduct Details

***

Prescription Drug Pricing and Research

http://www.MCOL.com

For 15 Companies that Sell the Top 20 Drugs in the US

***

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Product DetailsProduct Details

***

Nursing Shortage in the USA

And … Surplus in the USA

By http://www.MCOL.com

***

***

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Product DetailsProduct Details

***

Big Pharma Quietly Enlists Leading Professors to Justify $1,000-Per-Day Drugs

THE LONG CON

Langan MD

By Michael Lawrence Langan MD 

Ya gotta spend money to make money, am I right?

The payoffs required are enormous, but once they get in, they make tons of money, and jacking the price of drugs to boot.

President Trump promised that he would take care of that and make a deal to roll back drug prices, but then he met with […]

***

businessman-fashion-man-person-1

***

The long con: Big Pharma Quietly Enlists Leading Professors to Justify $1,000-Per-Day Drugs — Later On

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Product DetailsProduct Details

***

Unrecognized Corporate Psychopathy in the Medical Profession

Join Our Mailing List

Langan MD

By Michael Lawrence Langan MD

In his book Without Conscience, Dr. Robert Hare notes: “If we can’t spot them, we are doomed to be their victims, both as individuals and as a society. ”

Dr. Clive Boddy in Corporate Psychopaths observes that “unethical leaders create unethical followers, which in turn create unethical companies and society suffers as a result.”

And more […]

***

 Snakes in Smocks: Unrecognized Corporate Psychopathy in the Medical ProfessionDisrupted Physician

***

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

 Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

Tell us About the Issues Affecting your Physician Focused Financial Advisory Practice

Join Our Mailing List

By staff reporters

Tell us about the issues affecting your physician-focused financial advisory or financial planning practice in 2020.

We are conducting a brief survey to learn more about the key issues affecting your practice, and how they impact your outlook for the coming year.

 

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™8Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

Physician Health Programs are NOT Above the Law

Join Our Mailing List

Originally posted on Disrupted Physician 

Are Physician Health Programs (PHPs) above the Law?

By Michael Lawrence Langan MD

Unable to get law enforcement to take cognizance of reported abuse, many doctors I have spoken with believe that the actors involved are impervious to criminal liability.

***

***

 Physician Health Programs (PHPs) are not above the law; They just think they are — Disrupted Physician

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™  Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

Health Insurance Fund Usage

Join Our Mailing List

By http://www.MCOL.com

A Breakdown and Allocation List

***

***

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Product DetailsProduct Details

***

On Competent, Ethical and Fair Legal Representation for Doctors?

Join Our Mailing List

Langan MD

By Michael Lawrence Langan MD

A Possible New Niche area for Lawyers

***

***

The attorney pool is currently over-served by those serving two clients and most of those outside simply do not know enough about the “physician health” legal issues related to doctors.

When they appear before the board it is as if they are a deer in the headlights.

It is a new terrain where all due process and […]

***

 Competent, Ethical and Fair Legal Representation for Doctors —A Possible New Niche area for Lawyers. — Disrupted Physician

***

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™   Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

The Apartment Rent vs Home Buy Decision

Join Our Mailing List

***

5-mt-juliet

***

Lately and frequently, the topic of homeownership has been popping up in my life.

I don’t know if this is a result of my age or current economic trends, but I figured I might as well organize my thoughts on the subject.

Generally, the renting vs buying debate goes something like this: renting is essentially […]

 Economics #7: Rent vs Buy — Wiser Daily

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

***

Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

DR. MARCINKO SEEKING UNIVERSITY FACULTY APPOINTMENT

Join Our Mailing List

Crowd Sourcing My Job Search – An Academic Social Media Experiment?

Dr. David Edward Marcinko MBBS DPM MBA MEd BSc CMP®

Any New Year typically brings to mind the passage of Father Time.

And, as a former endowed chairman and distinguished Business School professor of capitalism, health economics, policy and management; it’s hard to believe that I’ll be finishing up my current visiting scholar-on-sabbatical tenure after this Spring semester.

So, I am crowd-sourcing my next university job search as an emerging trend. It’s the career development equivalent of my just launched WIKI health dictionary project.

HDS

HEALTH INSURANCE, MANAGED CARE, ECONOMICS, FINANCE AND HEALTH INFORMATION TECHNOLOGY COMPANION DICTIONARY SET

      Product DetailsProduct DetailsProduct Details

Regardless of the job search, check it out and tell me what you think!

Comprehensive Curriculum Vitae

http://www.DavidEdwardMarcinko.com

***

WEBINAR on Medical Office Sexual Harassment Issues

Join Our Mailing List

About MentorHealth

MentorHealth, the sponsor of this webinar, is a comprehensive training source for healthcare professionals that is high on value, but not on cost. MentorHealth is the right training solution for physicians and healthcare professionals. With MentorHealth webinars, doctors can make the best use of time, talent and treasure to benefit their continuing professional education needs.

mentorhealth-gif-logo

***

Romantic Patient Advances

DEM white shirt

 ***
Presented By
Professor David Edward Marcinko 
March 13, 2017
***

Overview: Within the medical practice, clinic, hospital or university setting, faculty and supervisors exercise significant power and authority over others. Therefore, primary responsibility for maintaining high standards of conduct resides especially with those in faculty and supervisor positions. Members of the medical faculty and staff, including graduate assistants, are prohibited from having “Amorous Relationships” with students over whom they have “Supervisory Responsibilities.” “Supervisory Responsibilities” are defined as teaching, evaluating, tutoring, advocating, counseling and/or advising duties performed currently and directly, whether within or outside the office, clinic or hospital setting by a faculty, staff member or graduate assistant, with respect to a medical, nursing or healthcare professional student. Such responsibilities include the administration, provision or supervision of all academic, co-curricular or extra- curricular services and activities, opportunities, awards or benefits offered by or through the health entity or its personnel in their official capacity.

Employees are prohibited from having “Amorous Relationships” with employees whom they supervise, evaluate or in any other way directly affect the terms and conditions of the others’ employment, even in cases where there is, or appears to be, mutual consent.

Date : Monday, March 13, 2017 10:00 AM PST | 01:00 PM EST

Duration : 60 Minutes

Price : $139.00

Romantic Patient Advances

Areas Covered in the Session:

  • Consensual Amorous Relationships Defined
  • Handling Patient Advances
  • Signs of Flirtatious Behavior and Discouragement
  • Sexual Harassment Defined
  • Preferential Treatment
  • Un Reasonable Interference with Performance
  • Two-Pronged Test Approach
  • Offensive Behavior
  • Gender Based Animosity
  • Same Sex Harassment
  • Employer Liability
  • Disciplinary Actions
  • Tangible Employment Actions
  • Punitive Damages
  • Financial and Economic Costs

Who Will Benefit:

  • Physicians
  • Dentists
  • Podiatrists
  • Osteopaths
  • Pharmacists
  • Nurse Practitioners
  • Physician Assistants
  • All Clinical and Allied Healthcare Providers
  • Attorneys
  • Risk and Medical Compliance Managers
  • Health Insurance Agents

SIGN-UP HERE

Romantic Patient Advances

REGISTRATION

***

rm-photo

***

WEBINAR NOTE: These are online interactive training courses using which, professionals from any part of the world have the opportunity to listen to and converse with some of the best-known experts in the HR Industry. These are offered in live & recorded format for single & multiple users (corporate plans ). Under recorded format each user gets unlimited access for six months. Corporate plans give you the best return on your investment as we do not have upper limit on the number of participants who can take part in webinar.

***

Just Because You’re Rich, It Doesn’t Mean You Deserve to Be … Rich!

Join Our Mailing List

By Uneasy Money – a repost

Recently Brad DeLong expounded on the extent to which the earnings that accrue to individuals do not correspond to the contributions total output that can be ascribed to the personal efforts of tho…

***

Money

***

 Wherein Hayek Agrees with DeLong that Just Because You’re Rich, It Doesn’t Mean You Deserve to Be

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

The impact of illegitimate authority on regulation of the medical profession

Join Our Mailing List

The overdue need for critical analysis

Langan MD

By Michael Lawrence Langan MD

It is not wisdom but Authority that makes a lawThomas Hobbes

In Questions of science, the authority of a thousand is not worth the humble reasoning of a single individual— Galileo Galilei

Regulatory Decisions and Public Policy Making

***

 

***

The impact of illegitimate authority on regulation of the medical profession: The overdue need for critical analsysis — Disrupted Physician

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

The American Health Care Act [just read it]

Join Our Mailing List

Just Released – Read it!

By staff reporters

***

***

http://www.ReadtheBill.gop

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Product DetailsProduct Details

***

How Health Plans Impact Revenue Performance?

Join Our Mailing List

By http://www.MCOL.com

And … Improve Quality Outcomes

***

***

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Product DetailsProduct DetailsProduct Details

***

On Extreme Poverty

Join Our Mailing List

Known / Unknown to Health Professionals?

Rick Kahler MS CFPBy Rick Kahler MS CFP®

Do you think the world is getting better, or worse, or neither?

Based on a recent survey by Max Roser of the University of Oxford, you probably said “worse.” That was the answer from about 95% of the survey respondents, who were from Sweden, Germany, and the US.

To be fair, it might have been good to put a time frame in that question. How would you have answered if the time frame was the last 70 years, 40 years, or 10 years? I suspect if people were asked if the world is getting better based on how it was 200 years ago, there may have been more positive answers.

The data time-line

In a recent article on ourworldindata.org, Roser noted that in 1820 only a miniscule slice of the elite enjoyed higher standards of living. Over 99% of people lived in extreme poverty, which the researchers measured as earning less than $1.90 a day. That number is adjusted for inflation, different price levels in countries, and currency differences.

Things really improved over the next 130 years. In 1950 (nearly 70 years ago) only 75% of the world was living in extreme poverty. In 1981 (nearly 40 years ago) that number was down to 44%. In the last ten years, the number of those living in extreme poverty dropped from 21% to 10%. That is amazing, especially when we consider that two-thirds of those in the US think extreme poverty has almost doubled in recent years.

As surprising as this data is, Roser adds another factor: the fall in extreme poverty is even more notable when we consider that the world population increased seven-fold in the last 200 years. Conventional wisdom may have assume such an increase in population would have had the opposite effect.

Change

What changed globally to produce such an incredible increase in the global standard of living in the light of exploding population growth? The world experienced an unprecedented period of economic growth and increasing productivity.

What was behind the economic growth?

My guess is that an experiment in democracy and free markets begun about 250 years ago with the founding of the United States had a lot to do with it.

It’s interesting that we’ve seen nothing about this trend in the media or from politicians. Wouldn’t a headline reading, “Extreme Poverty Rate Falls 50% in Ten Years” be noteworthy? Or how about “130,000 Fewer People A Day Are In Extreme Poverty Since 1990?”

During the same 200 year period illiteracy dropped from 88% to 15%. Global child mortality decreased from 42% to 4%. The number of those living in democratic societies rose from 1% to 53%. Even global income inequality as measured by the Gini coefficient, while still very high, fell by 5% between 2003 and 2013.

We have heard nothing about any of that. Our news and our politicians do not emphasize how the world is changing but rather what is wrong in the world. Roser notes that, “The media focuses on single events and single events are often bad.” Most of us know intellectually that sensationalism sells and a steady diet of sensationalism can cause us to lose perspective.

***

***

Assessment

The stories we hear of how financial well-being is in decline are not true. Such misinformation could be one of the biggest global threats we face. Believing that the poor are getting poorer and the rich growing richer on the backs of the poor polarizes and divides us. If the truth of the progress we’ve made became common knowledge, it could provide a foundation of collaboration and hope which would serve to unite us to continue the progress.

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™8Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

On Financial Product Sales Commissions

Join Our Mailing List

Rick Kahler MS CFPBy Rick Kahler MS CFP®

What’s wrong with earning a commission from the sale of a financial product?

Nothing. It isn’t any more inappropriate than a car salesperson earning a commission when you buy a vehicle.

Yet there’s one important difference. When you buy a car the roles are clear. You know going in that the salesperson is there to sell you their product. You understand it’s your responsibility to do your homework and know what you need and can afford.

Role Confusion

That clarity of roles is purposely clouded in the financial services industry. The “salespeople” are rarely referred to as such. Instead they call themselves creatively contrived variations like “financial advisor,” “financial planner,” “financial consultant,” or “financial representative.” The only advice a financial salesperson gives is in conjunction with the sales pitch to buy their product, where the incentive for them is receiving a commission.

This pretense that salespeople are working for the customer rather than the financial firm that employs them creates an inherent conflict of interest. The salesperson’s financial rewards come from pushing products versus giving client-oriented, comprehensive financial advice.

Conflict of interest

The conflict of interest resulted in many brokerage and insurance firms in the 1980’s providing incentives for their salespeople to push high commission products while hiding the high fees.

Examples:

  • Just one of many examples was described in a 1993 article in the Los Angeles Times. Prudential allowed salespeople to cheat customers out of $3 billion of losses invested into 700 Prudential limited partnerships that were high-risk and “rife with misconduct” while telling investors they were “safe, high-yield investments comparable to bank certificates of deposit.” The company finally agreed to a fine of $371 million, representing about 12% of what investors lost.

You might think that, 24 years later, things have changed and large financial firms selling products have changed. They haven’t.

  • One recent example was the $185 million fine paid by Wells Fargo over charging their customers fees for financial products they didn’t authorize.
  • Also, two years ago JPMorgan was fined $307 million for product pushing. Last year they were fined $264 million for their part in a vast foreign bribery scheme.
  • In 2015, one of the top JPMorgan representatives, Johnny Burris, who has been in the business for more than 25 years, refused to steer clients into proprietary JPMorgan funds that he felt had become rife with high fees. As reported in Financial Planning magazine, he was let go by the company.

But wait, that’s not all.

  • If you think Wells Fargo and JPMorgan’s fines were notable, think again. According to the Columbus Dispatch, Bank of America has paid $76.6 billion in 31 settlements from 2009 to 2016. During the same period, Chase Bank paid $38 billion in 22 settlements and Citigroup paid $15.8 billion in 15 settlement cases.

With a track record like this, you might think that consumers would be demanding wholesale changes in the way we regulate financial advice. They probably would be if they were personally aware of how hidden costs and fees cost the average investor thousands of dollars a year. No wonder that big financial firms can afford to pay billions in fines as a cost of doing business.

***

aamzlyk

***

Assessment

Other countries, including Australia, Canada, and the UK, have required a distinct separation of financial advice from financial sales. Hopefully the US won’t let another 24 years go by with no changes in the way we regulate companies that sell financial products. For those changes to be driven by consumer demand, more investors need to learn about the costs they pay and to realize that sellers of financial products are not that different from sellers of cars.

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

The Emerging Role of Chief Diversity Officer [CDO] 2.0

Join Our Mailing List

dem-2

By Dr. David Edward Marcinko MBA MEd

http://www.CertifiedMedicalPlanner.org

My history

I came of age on the mean inner city streets of Baltimore, Maryland and developed a special interest in diversity, inclusion and urban renewal at a young age.

Today, I resonate with the identity of human capital educational leadership; small classes or teams; engaged students and stakeholders; parents and teachers; research and development; and a motivated staff inculcating life-long learning initiatives and critical thinking skills.

Career

Yet, I am not a career opportunist seeking incremental advancement through the halls of academia. Rather, I am a culturally sensitive and bi-racial physician-executive who senses there are deep, but often untapped, human resources embedded within many universities. If true; they are best released by an externally recruited champion of diversity and inclusion.

A Chief Diversity Officer [CDO]; if you will.

This includes a respect for values that celebrate the unique attributes, characteristics and perspectives that make each person who they are; ethnicity; gender; gender identity; language differences; nationality; parental status; physical, mental and developmental abilities; race; religion; sexual orientation; skin color; socio-economic status; work and behavioral styles; the perspectives of each individual DNA shaped by their nation, experiences and culture—and more.

Even when people appear the same on the outside, they are different.

Importantly, such inclusion includes a strategy to leverage diversity.

  • Diversity always exists in social systems.
  • Inclusion, on the other hand, must be created.

In order to leverage diversity, an environment must be created where people feel supported, listened to and able to do their personal best; for example:

The BAKKE DECISION

Historically, and for me, an important ruling on affirmative action by the Supreme Court in 1978 was the BAKKE Case. Allan Bakke, a white man, was denied admission to a medical school that had admitted black candidates with weaker academic credentials. Bakke contended that he was a victim of racial discrimination. The Court ruled Bakke had been illegally denied admission to the medical school, but also that medical schools were entitled to consider race as an admission factor.

***

92bd7cff-d571-4a20-9c4d-fd339ead550d

***

My story

As Department Chair and Residency Director at a local hospital, I was credited with accepting the first women residents and African Americans into our post-graduate education and surgical training program.

So, at this level of blended pedagogy, andragogy and heutagogy, my mission is to be a modern guide on the side; not bombastic sage on the stage. Moreover, this CDO 2.0 position holds special gravitas in order to set the tone for the future growth of inclusion and diversity thru example; in words and deeds.

Assessment

Frankly, I don’t see the CDO role as a mere “job”. It is a calling that requires a “hands-on” ambassador — helping to advise and lead in all related matters. As the sage once opined:

There is no limit to what you can accomplish if you don’t care who gets the credit!

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™8

***

C-Suite Executive Concerns about Health Policy

Join Our Mailing List

And … Priorities for 2017

By http://www.MCOL.com

***

graphoid021517

***

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

***

%d bloggers like this: