BUZZ-Hospital operators fall after Raymond James cuts ratings on near-term challenges

Reuters11-22

** Shares of hospital operators HCA Healthcare , Tenet Healthcare and Community Health Systems fall between 1% and 6% in early trading

** Brokerage Raymond James downgrades hospital group ahead of potential headwinds including an expected reduction in 2026 in the number of patients seeking hospital services under Obamacare plans, which currently represent a high single digit percentage of revenues

** Downgrades HCA to "market perform" from "outperform" and THC to "outperform" from "strong buy" citing that their revenues are most likely to be hurt due to a reduction in volumes

** Brokerage expects about 20% drop in Obamacare patients across the sector, due to a new republican run government, and additional subsidies related to these plans for hospitals ending in 2025

** Brokerage also cuts CYH to "underperform" from "market perform" and maintains rating on UHS at "market perform"

** Adds that potential reform of state-backed Medicaid insurance plans is another point of risk for hospitals as patients from these plans have represented an improving source of earnings and margins

** As of last close, HCA up 20.5% , UHS up 29%, CYH up 13% and THC up 90%

(Reporting by Sriparna Roy and Bhanvi Satija in Bengaluru)

((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment