Stocks of the largest for-profit hospital operators face a nebulous next few days, as many healthcare stock analysts think the Supreme Court ruling will greatly impact the value of shares, according to a Chicago Sun Times report.
If the Patient Protection and Affordable Care Act is upheld, stock shares are likely to rise as for-profit hospital chains such as Nashville, Tenn.-based Hospital Corporation of America, Franklin, Tenn.-based Community Health Systems and Dallas-based Tenet Healthcare would see a new, bigger load of insured patients.
However, if the mandate is struck down, their earnings could take a hit as higher taxes and lower volumes would persist. A study from analytic firm Robert W. Baird & Co. found that any affirmation of the PPACA would increase hospital stocks by up to 10 percent, but if it is ruled unconstitutional, hospital stocks could drop by up to 10 percent, according to the report.
If the Patient Protection and Affordable Care Act is upheld, stock shares are likely to rise as for-profit hospital chains such as Nashville, Tenn.-based Hospital Corporation of America, Franklin, Tenn.-based Community Health Systems and Dallas-based Tenet Healthcare would see a new, bigger load of insured patients.
However, if the mandate is struck down, their earnings could take a hit as higher taxes and lower volumes would persist. A study from analytic firm Robert W. Baird & Co. found that any affirmation of the PPACA would increase hospital stocks by up to 10 percent, but if it is ruled unconstitutional, hospital stocks could drop by up to 10 percent, according to the report.
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