For-profit hospital stock report: Week of March 20-24

Fueled Friday by Republicans’ decision to scrap the American Health Care Act, four of the five major for-profit hospital operators saw their stock prices rise last week.

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After the House called off a vote on the AHCA Friday afternoon, healthcare stocks saw an upswing, according to Bloomberg. For instance, in addition to a rise in some for-profit hospital operators’ stocks, insurer Centene Corp., saw its share price rise 5.2 percent to $68.73 in late trading Friday, the report states.

Sheryl Skolnick, an analyst with Mizuho Securities, told Bloomberg she believes certain for-profit hospital operators’ stocks are “now in the correct neighborhood, reasonably balancing risk and opportunity.”

Among the major for-profit hospital operators, Dallas-based Tenet Healthcare saw the largest increase in share price, with shares rising 3.1 percent.

King of Prussia, Pa.-based Universal Health Services saw its share price rise 0.8 percent, the least of any of the major for-profit hospital operators.

Brentwood, Tenn.-based LifePoint Health is the only for-profit hospital operator that saw its share price fall last week.

Here is how the five operators stacked up.                                                     

  • Community Health Systems (Franklin, Tenn.): $9.56 per share (up 2.4 percent)
  • HCA Holdings (Nashville, Tenn.): $86.60 per share (up 2.4 percent)
  • LifePoint Health (Brentwood, Tenn.): $62.05 per share (down 0.1 percent)
  • Tenet Healthcare (Dallas): $18.50 per share (up 3.1 percent)
  • Universal Health Services (King of Prussia, Pa.): $121.00 per share (up 0.8 percent)

 

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