The U.S. Supreme Court's decision on King v. Burwell was good news for healthcare stocks.
The high court handed down its opinion on King v. BurwellThursday morning, ruling 6-3 that tax subsidies under the Patient Protection and Affordable Care Act are available to all Americans, even those who reside in states that did not establish their own health insurance exchanges.
The Supreme Court's ruling was good news for hospitals, as patients will not be forced to give up their health coverage because they cannot afford it without subsidies.
A number of healthcare sector stocks closed higher Thursday after the decision was issued, including the five major for-profit hospital operators.
- Community Health Systems (Franklin, Tenn.): up 12.97% to $62.45 per share
- Hospital Corporation of America (Nashville, Tenn.): up 8.82% to $90.72
- LifePoint Health (Brentwood, Tenn.): up 8.08% to $83.39
- Tenet Healthcare Corp. (Dallas): up 12.24% to $56.21
- Universal Health Services (King of Prussia, Pa.): up 7.73% to $140.78
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