Health care stocks had a mixed run after last week's monumental Supreme Court decision. Despite the run-up in select names, CRT Capital's Sheryl Skolnick thinks any upside to the decision is going to be short lived. Any benefits coming from less bad debt are likely to be offset by slower reimbursement growth and fiscal belt-tightening. Besides, the law's major provisions won't kick in until 2014, and Republicans have vowed to repeal the law the first chance they get.
Citigroup says hospital stocks are the big winner in the Supreme Court's healthcare decision and expects the group to trade materially higher. The firm recommends buying the following on strength: Universal Health (UHS +7.8%), HCA Holdings (HCA +9.5%), Community Health (CYH +7.5%) and Tenet Healthcare (THC +6%).
Hospital operators are soaring following the Supreme Court opinion validating most of the Healthcare Act, although they're down from intial highs. HCA +6.5%, CYH +7.9%, UHS +2.85%, THC +6.9%, LPNT +4.4%.
More on the Supreme Court healthcare opinion: The bottom line: the entire ACA is upheld, with the exception that the federal government's power to terminate states' Medicaid funds is narrowly read. The Supreme Court's live blog is here.
Citigroup upgrades HCA (HCA) and six other hospital stocks to "buy" ahead of the Supreme Court's decision this month on whether to void some or all of Obamacare. While Citi expects shares to rise in two of three possible scenarios, the call seems a bit premature given that the brokerage forecasts falls of 5%-10% if the healthcare law is totally struck down.
HCAdownwardly revises Q1 revenue, expecting $8.38B-$8.43B vs. $8.87B consensus and $7.41B in the year-ago period, and EBITDA of $1.795B-$1.845B vs. $1.59B a year ago. HCA says its revenue estimate includes two upward adjustments for Medicaid for a combined total of $188M. HCA +1.9% premarket.
HCA Holdings (HCA) moves up 5.8% in premarket trading after beating the estimate of analysts with Q4 earnings and declaring a special dividend. The hospital operator says shareholders are in line for a $2.00 per share payout that will be funded through existing cash and borrowings from the firm's credit facilities.
HCA Inc plans to issue a $2B dividend to PE owners including KKR & Co. and Bain Capital LLC. Funded by a HY issue. Back to the future.
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HCA vs. ETF Alternatives
HCA Holdings Inc is a health care services company. It operates 165 hospitals, comprised of 159 general, acute care hospitals; five psychiatric hospitals; and one rehabilitation hospital. In addition, we operated 115 freestanding surgery centers.