The death of 'Trumpcare' is great for hospital stocks
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"Trumpcare" is dead, for now, and some healthcare stocks are loving it.
A number of hospital and healthcare provider companies are seeing an uptick following the inability of Republicans to pass the American Health Care Act — their bill to repeal and replace Obamacare, also called "Trumpcare."
The thought being that since 24 million more people would have been without insurance under "Trumpcare" compared to the current baseline, fewer Americans would utilize the services of these providers, thus depressing revenues.
Now after disagreements within the GOP sinking the bill despite the party's majorities in both the House and Senate, and President Donald Trump moving on to other legislative priorities, these companies are in the green despite the broader sell-off in the market.
Here's a quick rundown of these winners as of 11:45 a.m. ET:
- Hospital Corporation of America, which manages 168 hospitals and 116 surgery centers, is up 5.1%, and at its highest level since August 2015.
- Universal Health Services, which manages hospitals and clinics, is higher by 4.1%, and at its best level since November 8, 2016.
- Tenet Healthcare, owner of 470 outpatient facilities and other healthcare service providers, is up 6.9%, and at levels last seen on March 9, 2017.
- Lifepoint Health, a rural-focused healthcare services provider, is stronger by 2.5%. Its stock hasn't been this high since March 9, 2017.
- Community Health Systems, owner of 160 hospitals, is up 3.5% and at its best level since October 25, 2016.
These moves follow solid jumps from the same names as the legislation looked less and less likely to pass on Thursday and Friday. Additionally, all five companies were slammed the day after the election when it seemed Obamacare could be repealed, as Trump promised.