Renewed Obamacare Repeal Effort Sends Hospital Stocks Down
Hospital stocks have dipped again amid reports that House Republicans will continue to pursue their health care reform plan in 2017.
Just days after House Speaker Paul Ryan pulled the GOP’s initial health care bill, the American Health Care Act, some Republicans have renewed their pursuit for the replacement and repeal of Obamacare. "We promised that we would repeal and replace Obamacare, and that's exactly what we're going to do," House Majority Leader Kevin McCarthy told reporters after a members-only Tuesday meeting.
Since the announcement Tuesday morning, multiple health care sector companies, including hospitals, have seen stock prices dip.
One of the biggest providers of acute health care services in the U.S., Community Health Systems, Inc. (CYH), saw its stock drop 4.41% to $9.20 per share on Tuesday. The Dallas, Texas-based health care services giant Tenet Healthcare Corp.’s THC stock went down 0.94% to $18.36 per share.
Hospital management power Universal Health Services, Inc. UHS stock dipped 0.36% to $125.52 per share. Nashville, Tennessee-based hospital and surgery center manager HCA Holdings, Inc.’s HCA stock went down 0.92% to $89.65 per share.
Acadia Healthcare Company Inc. ACHC, which helps treat addiction, behavioral health, and mental health, saw its stock price dip 1.02% to $43.59 per share. Long Beach, California-based Molina Healthcare, Inc.’s MOH stock went down 0.35% to $45.75 per share.
A Few Health Care Stocks See A Boost
While some health care industry giants took a hit after the news of a renewed GOP health law push was announced, others profited. Some medical device sector companies benefited last week when an Obamacare repeal seemed more likely.
Inogen Inc. INGN, which develops and manufactures portable oxygen concentrators, stock gained 1.42% Tuesday after it rose roughly 27% over the last 30 days. Inogen is a Zacks Rank #1(Strong Buy).
Health care insurance provider Aetna Inc.’s AET stock went up 0.59% to $127.01 per share Tuesday. Fellow insurance giant Humana Inc. (HUM) saw its stock jump 1.55% to $206.63 per share.
The largest health care ETF in terms of market cap, Health Care Select Sector SPDR’s XLV stock went up 1.81% to $1,415.20 per share.
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