Wells Fargo analyst downgrades CHS, HCA, cuts price targets

Wells Fargo analyst Gary Lieberman has downgraded his rating for both Community Health Systems and HCA Holdings to 'market perform' from 'outperform,' saying the companies could be affected by the Supreme Court's decision to hear King v. Burwell, a circuit case related to federal insurance subsidies.

Lieberman's move is notable because analysts' views of hospital stocks have in recent months been overwhelmingly positive based on health reform and Medicaid expansion expectations. Lieberman also cut his CHS price target to $48 from $52 and his HCA target to $64 from $70.

Shares of CHS (Ticker: CYH) fell nearly 4 percent Wednesday to $46.85 and were down another percentage point Thursday. Shares of HCA (Ticker: HCA) dropped about 2 percent to $64.84 Wednesday are were down a little more Thursday.

Nov 13, 2014 8:41 AM

Under ACA, it may be time to pity the poor actuaries

Insurers, others gearing up for year two — and three — without first-year data
Nov 12, 2014 3:00 PM

THA again partnering on insurance exchange enrollment

The Tennessee Hospital Association is again teaming up with Enroll America, a national group that provides support services for people looking to sign up for health insurance through the federal marketplace. The open enrollment period starts on the 15th.

Nov 11, 2014 6:32 AM

CHS CEO talks politics on election day earnings call

Smith: Republicans 'have to compromise'
Nov 4, 2014 1:00 PM

Van Horn talks Fellows program, health reform

Program co-director calls for more 'skeptical evaluation' of industry
Sep 22, 2014 6:56 AM

Jarrard, Second Harvest partnering on wellness initiatives

Food bank sees partnership opportunities with health care community
Sep 3, 2014 2:34 PM

A Quaker State lift for CHS, LifePoint

Middle Tennessee's hospital companies have some notable reform-driven tailwinds helping their bottom lines these days. Late last week, the Obama administration added another one when it said Pennsylvania will become the 27th state to expand Medicaid coverage to about 500,000 residents. That stands to benefit, among others, locally based Community Health Systems and LifePoint Hospitals. The former has been steadily building a Pennsylvania presence in recent years and now gets 12 percent of its revenues there. The latter is buying its way into Western Pennsylvania through its Duke LifePoint partnership.

SEE ALSO: Word from Gov. Bill Haslam last week that his administration plans to submit a Medicaid expansion plan this fall. For the record, Tennessee generates 7 percent of CHS' revenues and almost 11 percent of LifePoint's.

Sep 2, 2014 9:51 AM

State changes course, will submit Medicaid expansion plan to feds, says Haslam

Governor to meet with new HHS secretary 'soon'
Aug 28, 2014 6:17 PM

Zeppos: 'I've stopped hoping for any solutions from Washington'

Vanderbilt University Chancellor Nick Zeppos told his assembled faculty senate last week that the school's medical center is still being hit "very hard" by the effects of health care reforms and the Haslam administration's refusal to expand Medicaid coverage in Tennessee. As a whole, he said, the U.S. health care sector won't be able to lean as much on institutions like Vanderbilt to absorb changes and costs.

“But a health system — and here I include local, state and national governments as well as the insurance industry — that continues to ask its nation’s universities and academic medical centers to make medical discoveries and produce the best physicians and scientists, at the same time that we increasingly shoulder the taxing responsibilities of a public hospital, is headed for trouble,” Zeppos said.

Aug 25, 2014 7:12 AM

'More room to run' for hospital stocks

Ben Levisohn at Barron's has taken stock of hospital investor and analyst sentiment following the second-quarter earnings reports of most of the industry players. His takeaway: Stocks of HCA Holdings, Community Health Systems, LifePoint Hospitals and their peers have "more room to run" thanks to the benefits of the Affordable Care Act and a still-improving economy.

"It is the first time since the credit crisis that the group has had multiple drivers still in front of it," says UBS analyst A.J. Rice.

Aug 5, 2014 7:01 AM