For-profit hospital stocks crashed in the first full week of November as one of the main provisions of the healthcare reform law continues its sputtering rollout.
Last week, HHS Secretary Kathleen Sebelius told the Senate Finance Committee that early enrollment rates for the federal health insurance exchange under the Patient Protection and Affordable Care Act will be very low. Today, the Wall Street Journal said government sources estimated only 50,000 successfully gained health insurance through the exchanges in October, or one-tenth of the administration's target.
For-profit hospitals are seen as the biggest beneficiaries of the exchanges, which will result in more covered, paying patients.
Dallas-based Tenet Healthcare Corp. lost the most, as its shares plunged more than 10 percent, erasing the past month of share earnings. Last week, Tenet reported its third-quarter profit dropped 30 percent, year over year. Shares of Nashville, Tenn.-based Hospital Corporation of America dropped more than 4.6 percent.
Here are the five-day stock prices and percentage changes for the week of Nov. 4 through Nov. 8.
• Community Health Systems (Franklin, Tenn.): $41.58 per share (down 2.67 percent)
• Health Management Associates (Naples, Fla.): $12.48 per share (down 2.42 percent)
• Hospital Corporation of America (Nashville, Tenn.): $45.13 per share (down 4.61 percent)
• LifePoint Hospitals (Brentwood, Tenn.): $49.95 per share (down 3.20 percent)
• Tenet Healthcare Corp. (Dallas): $42.33 per share (down 10.30 percent)
• Universal Health Services (King of Prussia, Pa.): $80.00 per share (down 0.97 percent)
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Tenet's Q3 Profit Drops 30%