Hospitals Shares Gain After High Court Upholds Health-Care Law

   By John Kell 
 

Shares of hospital operators surged Thursday after the U.S. Supreme Court upheld the constitutionality of the Obama administration's health-care reform legislation.

The court said Congress was acting within its powers under the Constitution when it required most Americans to carry health insurance or pay a penalty--the provision at the center of the two-year legal battle. Upholding the individual mandate benefits hospitals because more Americans having health-care coverage would lighten the providers' load of unpaid bills.

Shares of HCA Holdings Inc. (HCA), the largest private-sector hospital operator in the U.S., rose 8.2% to $28.78 in recent trading. HCA facilities provide about 4% to 5% of all domestic inpatient care.

In a statement, HCA said, "We will continue to work with patients, payors and the government to ensure a smooth transition as the provisions of the law are enacted. We are pleased that millions of Americans will have coverage for better access to vital medical services, preventive care and acute care."

Elsewhere, Universal Health Services Inc. (UHS) gained 3.8% to $40.72, Community Health Systems Inc. (CYH) added 7.1% to $27.32, Tenet Healthcare Corp. (THC) rose 4.4% to $5.20, LifePoint Hospitals Inc. (LPNT) jumped 4.4% to $40.15 and Health Management Associates Inc. (HMA) increased 8.1% to $7.43.

--Jon Kamp contributed to this report.

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