The stocks of several for-profit hospital chains ballooned today after the Supreme Court ruled the Patient Protection and Affordable Care Act is constitutional, according to a Dow Jones report.
Nashville, Tenn.-based Hospital Corporation of America, the largest for-profit hospital operator in the United States, saw its stocks jump 7.8 percent as of noon EST. Stocks for Community Health Systems in Franklin, Tenn., surged 10.9 percent, while Dallas-based Tenet Healthcare's stocks rose 7.6 percent, according to the report.
Goldman Sachs analysts said hospitals were the "net winners," as the Supreme Court upheld the individual mandate, according to the report. The majority of the Supreme Court justices said the individual mandate survived as a tax and was constitutional. However, the Supreme Court limited the scope of the Medicaid expansion, saying the federal government cannot take away all of a state's Medicaid funding and, consequently, states could reject the Medicaid expansion.
Contrary to hospitals, health insurers' stocks took a dive. WellPoint declined 6.3 percent as of noon EST, while Aetna dropped 4.5 percent and UnitedHealth Group sank 3.3 percent. However, Medicaid managed care insurers such as WellCare Health Plans, Amerigroup and Molina all saw upticks in their stock prices as Medicaid coverage could still be expanded.
Nashville, Tenn.-based Hospital Corporation of America, the largest for-profit hospital operator in the United States, saw its stocks jump 7.8 percent as of noon EST. Stocks for Community Health Systems in Franklin, Tenn., surged 10.9 percent, while Dallas-based Tenet Healthcare's stocks rose 7.6 percent, according to the report.
Goldman Sachs analysts said hospitals were the "net winners," as the Supreme Court upheld the individual mandate, according to the report. The majority of the Supreme Court justices said the individual mandate survived as a tax and was constitutional. However, the Supreme Court limited the scope of the Medicaid expansion, saying the federal government cannot take away all of a state's Medicaid funding and, consequently, states could reject the Medicaid expansion.
Contrary to hospitals, health insurers' stocks took a dive. WellPoint declined 6.3 percent as of noon EST, while Aetna dropped 4.5 percent and UnitedHealth Group sank 3.3 percent. However, Medicaid managed care insurers such as WellCare Health Plans, Amerigroup and Molina all saw upticks in their stock prices as Medicaid coverage could still be expanded.
More Articles on Hospital Stocks:
For-Profit Hospital Stock to Take Hit if PPACA is Struck Down
HCA, Tenet, CHS Credit Default Swaps Jump During Health Law Debate
Hospital Stocks May Rise if PPACA Stands