Major healthcare stocks were edging slightly higher early trading Oct. 24 after a difficult end of the previous week following disappointing financial results in the sector.
Both Nashville, Tenn.-based HCA Healthcare (NYSE: HCA) and Dallas-based Tenet Healthcare (NYSE: THC) started a slight recovery Oct. 24 after seeing their prices plunge Oct. 21, Bloomberg News reported. Tenet posted the largest decline, sinking up to 32 percent, its worst intraday fall since November 2008, while HCA fell as much as 15 percent.
The underwhelming financials of the two companies, which included missed revenue targets and revised net operating income expectations, had a knock-on effect, causing stocks such as Franklin, Tenn.-based Community Health Systems to also decline late for the week ending Oct. 21.
Hospitals have faced challenges this year over receding numbers of COVID-19 patients and the trajectory of the recovery of non-COVID procedure volumes that were expected to rebound as the pandemic ebbs, according to Bloomberg. Elevated labor costs due to contract staffing have also been hurdles.
Community Health Systems will release its quarterly results Oct. 26 after close of trading.