Ruling Against Subsidies Could Hit Hospital Stocks Harder Than Earnings

Overview


Guy Collier said that urban safety-net, rural, faith-based and academic hospitals may feel the most impact if the Supreme Court’s King v. Burwell ruling invalidates Affordable Care Act tax credits in states using the federal exchange. Observing that the loss of subsidies and coverage would come as the government plans major Medicare and Medicaid reductions, Mr. Collier continued that “if you have these cuts and you don’t have (these) newly insured patients, the picture is pretty grim for hospitals.”