ML-Implode News - Health care industry beginning to collapse

Forget about the subprime mortgage collapse. The health care sector is nursing its own toxic mess, with soaring debt, the analysts say. "As a nation, we have to step up our game and get on top of it; this is a huge issue," said Chris Oretis, a former Washington lobbyist who now works as executive vice president in the life insurance secondary markets at GWG Holdings.
As industry spending and debt servicing rage out of control, health care is ranked as the No. 1 US "systemic recession risk" in a new report. The sums at stake are staggering: Spending in the sector accounted for $3.3 trillion in 2015, and is 18 percent of the US economy today. The industry generates 16 percent of private sector jobs nationwide, up from 10 percent in 1990.
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The first murmurs of early trouble may have been detected.

"Companies in the health care sector are starting to lay people off," said John Burns, CEO of John Burns Real Estate Consulting, an independent research and consulting firm on macro trends, such as the health care and technology sectors, that drive the US housing market.

"Health care companies borrowed too much money, and have grown their debt faster than their revenue, so you have to have a pullback."

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Health care industry beginning to collapse