Hospital Stocks May Rise if PPACA Stands

Hospital stocks at Nashville, Tenn.-based Hospital Corporation of America, Dallas-based Tenet Healthcare and other for-profit hospital operators may benefit the most if the Supreme Court upholds the constitutionality of the Patient Protection and Affordable Care Act, according to a Dow Jones Newswires report.

Stock analysts hold the positive outlook for hospitals because if more people carry insurance, as is the case in the PPACA, non-paying patients and bad debt would decrease, according to the report.

Goldman Sachs analyst Matthew Borsch said other segments of healthcare, such as health insurers and other healthcare firms, could also yield a “neutral-to-positive” reaction if the healthcare law is upheld. Medicaid-specific insurers like Centene stand to benefit greatly if the Medicaid expansion provision of the law stands, which would significantly boost their Medicaid rolls.

Hospital Stocks May Rise if PPACA Stands

More Articles on Hospital Stocks:

Next Up in Financial Management

43% of hospitals are in the red: 6 financial notes

'Medicare for All' gets its moment

Trinity Health Mid-Atlantic CEO: 'You can't cut your way to success'

More Articles on Hospital Stocks:

Next Up in Financial Management

Join the 500,000+ healthcare executives who start their day with Becker's