Mar 08th 2013 - Edison Investment Research today published a report on Circle Holdings (CIRC.L, LSE:CIRC, LON:CIRC) entitled "To Build Or Not To Build?". In summary, the report says:
Circle is a disruptive new entrant in the UK healthcare market, seeking to benefit from both additional NHS operating contracts and new private hospitals. It brings a partnership-style operating model and efficient, appealing, newly built facilities, supported by committed consultant volumes, to challenge an existing oligopoly in local markets. Expanding the number of Circle hospitals to drive profit growth will be greatly assisted if the cost of the third-party financing for new hospitals (and the rent that Circle pays) falls. A growing operational track record will help, but there is also a potential inefficiency in the real estate market to be corrected.
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