Hospital Stocks Soar As Court Upholds Health Act

Hospitals were the businesses with the most to lose from a negative Supreme Court opinion on the 2010 health law. Sure, insurers would have lost millions of potential customers. But if the act were struck down, they would have also been freed from restrictions on their profits, leading Wall Street analysts to predict mixed results for them in the event that the law failed.

For hospitals, on the other hand, such an outcome would have represented almost pure pain. While the act puts pressure on future Medicare payments, and the court gave states the choice to opt out of Medicaid expansion, analysts still anticipate substantial new revenue streams for hospitals via Medicaid and through the private market.

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Source: Kaiser Health News