What does HealthSpring actually do?
Essentially, HealthSpring's business works like this: The company signs up Medicare recipients and takes care of their healthcare in exchange for a check from "Uncle Sam." The company makes its money by keeping healthcare costs lower than the money they're paid by the government. Gelman says, "HealthSpring's business model is based on economies of scale.
It's a business plan that's worked so far -- HealthSpring's
While fund members did have some concerns over the lack of analyst and media coverage of the stock (only three analyst reports came out after its latest earnings call, according to Gelman), they ultimately decided to add the stock to the fund.A Look at the Financials It has been a