Locally based hospital analyst Whit Mayo dented stocks in the sector Monday with a note that said the federal budget negotiations now (kinda) underway in D.C. will cut into health care spending. Mayo said his Robert W. Baird team also thinks the potential delays in setting up health insurance exchanges also won't help hospital stocks.

Here are the particulars on the local companies: Mayo downgraded Community Health Systems and Vanguard Health Systems to 'neutral' from 'outperform.' CHS' price target also was cut to $31 from $33. Mayo also lowered the price target on HCA Holdings to $35 from $37, but kept his 'outperform' rating. All three names were down 1.6 percent or more, with CHS taking the worst of it.

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