Michael Burry Buys HCA Healthcare, Sees $600–900M Subsidy Headwind as M&A Catalyst
HCA•Michael Burry built a new position and may purchase call options in HCA Healthcare, praising its 'insanely efficient' operations and 'stellar' ROIC. He said the expected $600–900 million Obamacare subsidy lapse, following a $150 million Q1 impact, creates a short-term headwind that could spur M&A and benefit HCA over peers.
1. Burry's New Position and Bullish Outlook
Michael Burry disclosed a significant new long position in HCA Healthcare and signaled intent to buy long-term call options, describing the company as an 'insanely efficient compounder' backed by 'stellar, steady' return on invested capital.
2. Obamacare Subsidy Lapse and M&A Implications
HCA reported a Q1 impact of $150 million from the expiration of enhanced Obamacare subsidies and projects a $600–900 million fiscal 2026 hit, but Burry argues this headwind favors HCA over competitors by creating acquisition opportunities and reinforcing its competitive efficiency.
