With junior recruiting spinning up and with group selection for my BB SA internship starting soon, I wanted to ask about what analysts in healthcare groups do and if any of you have moral qualms about the role you play? I'm super interested in HC and have read a number of books on the history of the medical-industrial complex in the USA, and personally I find it pretty disgusting how the incentives of doctors, insurers and pharmaceutical companies are fucking over Americans with high and rising prices for drugs and insurance, poorer quality and less cost-effective care, the apalling rates of medical bankrupcies, etc. I guess the long and short of it is that I think we should nuke the system from orbit and institute a single-payer regime a la the NHS, and this is coming from somebody who believes very strongly in the virtues of free markets generally.
I suspect that this might be a problem because of the sorts of assumptions that go into pitching/modeling a hc company. For example, we might make assumptions about how long a firm can maintain its patent on a lucrative drug, which is directly related to how well it can product-hop and extend its viability by changing the delivery method, tweaking the formula, i.e. gaming the system to the direct detriment of consumers. Another example might be projecting how much revenue can grow and margins improve on a drug or hc product (which is related to pricing power) where once again success as a corporation is often consumer-hostile.
Let's say we're advising a big insurer on acquiring a smaller insurer, and our client thinks they can cut costs in part by reducing the smaller firm's benefit payout ratio. The idea of pitching the transaction to investors if I know it likely will hurt people honestly just makes me want to vomit and would make an already hard job completely unbearable. Note though that I don't have any qualms with firms firing people or outsourcing functions, just with private entities in what should arguably be a government-administered public good intentionally maximizing profit at the expense of sick people.
Should I avoid hc groups for this reason? Are transactions ever justified on bases that are likely hurtful to the population, or are they justified on the usual bases of general cost-savings/synergies? Where else should I look to learn more about hc banking in particular? Do you think your work benefits society in the same way that work in other groups does?
I would really appreciate any insights, because depending on the details of the job I can see myself gunning for Healthcare as my top choice (as I would love to work in Healthcare VC in the future) or avoiding it conpletely. Thanks!
Investment Banking Interview Course
- 7,548 questions across 469 investment banks. Crowdsourced from over 500,000 members.
- Technical, behavioral, networking, case videos, templates. All included.
- Most comprehensive IB interview course in the world.