Making lemonade

It is very likely that the United States of America is going to have a single payer health care system (socialized medicine) within the lifetimes of most of the people reading this blog. I wish this were not so, but the American people have decided that there is a "health care crisis" and the Democrat party is pushing full socialism. In response the Republican party has adopted a "me too, but not quite as much" approach. So it is most likely just a matter of time.

If McCain wins in November he will almost certainly follow the pattern he has established and "cross the isle" to work with Democrats to bring about a "reform" which gives the Democrats about 60-75% of what they want, leaving it to the next liberal president to push things over the finish line.

If Clinton or Obama win they will attempt to go the whole distance and if they are not blocked by a united Republican resistance in the Senate they just might get it done.

Since I am always looking out for the interests of my loyal readers I would like to bring an opportunity for significant profit to your attention. For those of you who do not already there is a type of financial instrument called a REIT. The REIT, Real Estate Investment Trust, is like a mutual fund which invests in real estate rather than in stocks or bonds. Most REITs specialize in particular types of real estate like office parks, residential apartment buildings or retail space.

Some even specialize in medical office space. It is this type of REIT which I wish to discuss. We have all seen the growth of medical offices, private hospitals and clinics along the US/Canada border which service Canadian citizens who wish to avoid the long lines and often substandard care offered by Canada's socialized health care system. If the US goes to socialized medicine the quality of care offered by those facilities will quickly drop to the same level available in Canada (and very likely less as Canada has many fewer illegal aliens and minorities clogging its system than the US will).

Since people in Canada who can afford to seek quality health care will no longer be able to obtain it in the US they will have to seek elsewhere, where they will be joined by many more US citizens seeking the same quality medical services. This will create an exodus of the best doctors, nurses and medical technicians who will relocate to Mexico in medical office parks, hospitals and clinics. Mexico has great natural beauty and a pleasant climate. The government, which is never blind to an opportunity to line its pockets, will make whatever changes to its laws need to be made to facilitate this new industry.

The medical tourism industry which already brings Canadians as far south as Florida will redirect itself to Mexico where well heeled northerners will combine trips to the doctor with holidays at the beach. Many REITs will come into being to seek out and develop the best sites for those wishing to combine quality health care with their vacation.

Medical services in Mexico will be much more affordable than they currently are in the US because it will not be possible to obtain insurance to pay for them. When patients have to write the checks themselves they will take care to compare prices and seek the best deal. The days of a hospital charging $40.00 for an aspirin will be over. All doctors from oncologists to cardiothoracic surgeons will do what plastic surgeons (whose work is usually not covered by insurance) currently do and publish their prices on their websites.

Medical rating services which verify medical professionals' credentials and inspect facilities and interview past patients will spring up filling the role which government regulators now perform.

Travel agencies will spring up specialising in putting together medical travel packages.

All of this represents opportunities for entrepreneurship and investment.

I'm not saying that socialized medicine in the US will be good, just that for those who see it as an obstacle to be overcome rather than a burden to be endured it will present the chance for profit.