Hims & Hers Health (HIMS) has emerged as a prominent online multi-speciality telehealth company, seamlessly connecting consumers with licensed healthcare professionals. Since its public debut in 2021, it has garnered significant attention, with highly erratic price trends that demand a certain level of courage from investors. Back in July, when the stock was trading around $23.50, we delved into this name in our column. Currently, it trades at $32.50. True to its volatile nature, the stock did not ascend in a straight line by 50% from July; it even dipped below $14 in September. Despite the volatility, we remain committed to holding this name and are considering adding to our position. After that September dip, the stock broke through the $25.50 three-year resistance zone. As long as it remains above this newly formed support zone, the potential for a double from the current level based on long-term technical projections of $65.00 remains intact.

Weight Loss Drug: A Key Driver of Headlines and Volatility

The most significant source of headlines and volatility for this modern company is their weight loss drug, which competes with Lilly's and Novo Nordisk's GLP-1 drugs. As stated on the HIMS website, "Hims & Hers offers compounded semaglutide injections, containing the same active ingredient as Ozempic and Wegovy. These compounded medications are not available over the counter; instead, they require a prescription from a licensed healthcare provider. Hims & Hers facilitates this process through online consultations, where medical professionals assess patients' eligibility for the treatment." Previously, the FDA ruled that Novo Nordisk's and Lilly's GLP-1s were in shortage, enabling compounding pharmacies like HIMS to offer a version for over-the-counter sale. Recently, the FDA removed Eli Lilly's GLP-1 from the shortage list, but Novo Nordisk's GLP-1s still remain on the shortage list, causing some confusion among investors. However, our research indicates that weight-loss drugs only account for approximately less than 10% of revenues, so their significance is not overly substantial. Even with the likely removal of the shortage classification from the FDA list, the stock is performing well. This is likely due to the other revenue channels and opportunities that the company possesses, which can drive future growth.

Denver Health is at the forefront of discussions regarding the impending changes in healthcare coverage. With the Colorado Hospital Association highlighting the challenges faced by Medicaid members and the potential loss of critical healthcare infrastructure, it becomes crucial to understand the implications and potential solutions.

Unraveling the Future of Healthcare Coverage in Denver

Impact of COVID-19 on Medicaid Disenrollment

According to the Colorado Hospital Association, Colorado stands out as one of the worst states when it comes to disenrolling Medicaid members post-COVID-19. This has led to a significant number of Coloradans losing their Medicaid coverage and being denied the healthcare benefits they are entitled to by law. The ramifications of this loss are far-reaching, as it increases the number of uninsured individuals. As Jeff Tieman, President and CEO of the Colorado Hospital Association, emphasizes, if policymakers do not take action, the state will face the daunting task of rebuilding costly healthcare infrastructure.This issue not only affects the individuals directly but also has a broader impact on the healthcare system as a whole. It highlights the need for proactive measures to ensure that Medicaid recipients continue to have access to essential healthcare services.

Benefits of Voter-Approved Ballot Measure 2Q

Denver Health has reaped the benefits of voters approving ballot Measure 2Q last month. This measure has raised an estimated $70 million annually for the hospital, providing a much-needed boost to its funding. As one panel member pointed out, if we value access to health as a human right in Colorado, then such measures become essential. It allows the hospital to continue providing quality care and ensures a more sustainable future.The increase in funding has also given Denver Health the opportunity to address various challenges, such as the significant increase in uncompensated care. In the last 5 years, uncompensated care has more than doubled, costing the hospital $155 million this year alone. With the additional funds, the hospital can better manage these costs and continue to serve the community.

Challenges and Discussions at Denver Health

The panel of healthcare experts at Denver Health engaged in a thought-provoking discussion about the future of healthcare. One of the key points raised was the balance between budgeting and serving the poor and vulnerable. As panel members emphasized, it is a question of whether we prioritize balancing budgets on the backs of the less fortunate or find alternative solutions.This discussion also highlighted the need for collaboration and partnership among different counties and stakeholders. By working together, it may be possible to improve the enrollment situation and ensure that more people have access to healthcare.In conclusion, Denver Health is at a critical juncture, facing the challenges and opportunities presented by the potential changes in healthcare coverage. Through proactive measures, collaboration, and a commitment to providing accessible healthcare, the hospital is working towards a sustainable future for all.