Healthcare is a complex subject and no bill will or can make everybody happy. It’s a matter of trade-offs and competing desires among different parties. Politicians ideally hope they can provide an optimal solution, but different people have different opinions on how this should be done. Given the Republicans are the majority party, they will have the opportunity to move healthcare to a more free-market solution relative to existing legislation. A big component revolves around the handling of Medicaid. Lower funding for the program will be a net-loss for some individuals and companies. In the REIT sector, those which possess a notable amount of nursing homes and elderly care facilities would expect to be negatively impacted in that portion of the portfolio due to a Medicaid rollback. Among these include the following: Sabra Health Care (SBRA) Quality Care Properties (QCP) Omega Healthcare Investors (OHI) Care Capital Properties (CCP) CareTrust REIT (CTRE) At the moment, Medicaid provides a bit over 60% of all nursing care facilities’ revenues. Firms with weak buffer room between cash flow and cost of rent will suffer the most, though the majority of firms have at least a 10% cushion and generally ideally upwards of 20%-30%. Regardless, any negative development that could dent liquidity ratios will have an adverse impact on both the credit and equity of these companies.