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 HCA
expects Obamacare benefit to taper off for rest of 2015
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[August 06, 2015]
By Rosmi Shaji
(Reuters) - Hospital operator HCA Holdings
Inc, the largest U.S. for-profit hospital operator, suggested benefits
from the Affordable Care Act (ACA) would taper off over the rest of the
year, a warning that weighed on the stocks of hospital operators.
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 The signature healthcare law, popularly called Obamacare, covers
medical insurance for Americans and has helped in boosting business
for various hospitals and insurers as more people avail of
insurance.
HCA reported a better-than-expected quarterly profit and revenue
driven by an increase in admissions and emergency room visits, but
executives suggested that the rise in enrollments would slow down
for the rest of the year.
HCA's shares closed down about 2 percent. LifePoint Health Inc
closed down about 4 percent, Tenet Healthcare about 4.3 percent,
Community Health Systems about 4 percent and Universal Health
Services about 1.5 percent.
"...Hospital stocks are off today as HCA comments that the ACA
benefit is annualizing has clearly spooked the investment community
regarding the potential upside from health reform," Oppenheimer
analysts wrote in a note.
But HCA said that after the slowdown this year, the rate of
enrollments could pick up again next year as patients seek to avoid
the rise in tax penalties levied on the uninsured.
Wall Street analysts agreed with the view.
PROFIT BEATS
HCA, which operates about 168 hospitals and 112 independent surgery
centers in the United States and UK, said it expected full-year
profit towards the high end of its previous forecast of $4.90-$5.30
per share.
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Same-facility emergency room visits increased 7.4 percent to 1.98
billion during second quarter ended June 30, while same-facility
patient admissions rose 4.1 percent to 459.7 million.
Nashville, Tennessee-based HCA earned an adjusted profit of $1.37
per share on revenue of $9.90 billion.
Analysts on average had expected a profit of $1.34 per share on
revenue of $9.82 billion, according to Thomson Reuters I/B/E/S.
(Reporting by Rosmi Shaji in Bengaluru; Editing by Don Sebastian and
Savio D'Souza)
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