Health Reform Series Part IX: Hospitals

The value of for-profit hospital stocks rests in the hands of the U.S. Supreme Court.

Hospital stocks could take a big hit if the high court throws out the entire Patient Protection and Affordable Care Act (PPACA), driving down shares by as much as 10%.  Conversely, stocks would likely jump 10% should the high court uphold the legislation.

A report earlier this month from Moody’s Investors Service warned a full or partial repeal of the health reform law would hurt for-profit hospitals as they will face increased exposure to bad-debt and reduced reimbursements.

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