Major for-profit hospital operators saw lower share prices Tuesday morning after the Congressional Budget Office released a score for the Republican-proposed American Health Care Act, reports Reuters.
The CBO score released Monday projects the ACA replacement plan would reduce the federal deficit by roughly $337 billion over the next 10 years. It also projects 24 million fewer Americans would have insurance coverage by 2026.
After the score was released, Nashville, Tenn.-based HCA Holdings saw its share price fall 1.8 percent, according to the report. Dallas-based Tenet Healthcare, Franklin, Tenn.-based Community Health Systems and Brentwood, Tenn.-based LifePoint Health saw their stock prices dip, 4.6 percent, 2.8 percent and 1.9 percent, respectively, reports Reuters.
Major health insurers also saw lower share prices in early trading Tuesday. Minnetonka, Minn.-based UnitedHealth Group saw its share price fall 0.2 percent, Hartford, Conn.-based Aetna's share price dipped 0.5 percent and Louisville, Ky.-based Humana's share price was down 0.1 percent, according to the report.
"While the CBO's estimate... is a negative headline for hospitals, we believe that in its current form, the bill's chances of passing are slim," Jefferies analyst Brian Tanquilut said in a research note, according to Reuters.
Mr. Tanquilut said in the report he thinks lawmakers "will eventually draft a more palatable, diluted version of 'repeal and replace' that would have a smaller impact on the number of uninsured."
Here is how the major for-profit hospital operators stacked up in early trading Wednesday morning compared to early trading Tuesday morning.
- Community Health Systems (Franklin, Tenn.): $9.12 per share (down 3.2 percent)
- HCA Holdings (Nashville, Tenn.): $84.32 per share (up 0.2 percent)
- LifePoint Health (Brentwood, Tenn.): $62.30 per share (up 0.4 percent)
- Tenet Healthcare (Dallas): $18.10 per share (down 0.8 percent)
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