Federal defense contractors find a new profitable business: Obamacare

From: PBS Newshour/The Rundown

BY Jay Hancock, Kaiser Health News

Two years ago General Dynamics, one of the biggest federal contractors, reported a quarterly loss of $2 billion. An “eye-watering” result, one analyst called it.

Diminishing wars and plunging defense spending had slashed the weapons maker’s revenue and left some subsidiaries worth far less than it had paid for them. But the company was already pushing in a new direction.

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“The DOD market is very weak,” said Steve Kelman, a Harvard management professor and contracting specialist. “The two growth markets are cybersecurity and health care. So everybody’s trying to get into those.”

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