Hospital Stocks Fall After Analyst Prediction Of Tough Times
A new report from Citigroup Global Markets forecasts difficult times ahead for hospitals and other related businesses that rely on government spending.
Market Watch: Hospital Stocks Fall On Analyst Downgrades
A 111-page report from a Citigroup analyst — featuring a gloomy outlook on government health-care funding and a downgrade on several hospital stocks — caused shares in the sector to drop Tuesday amid a broad market rally. The report from Gary Taylor notes that a long bear market in government spending seems to be on the horizon, with fears over cuts in Medicare spending in the second half of 2012 (Britt, 1/3).
Modern Healthcare: Citigroup Sees Weak Gov't Spending; Hospital Stocks Fall
Citigroup analysts predict a long bear market in government entitlement spending, which could hurt Medicare and Medicaid spending more than anticipated. Under the heading of "what would concern us most," the authors speculated that Republican control of the Senate could have an extremely negative effect on publicly traded hospital companies given the pounding they took during the debt-ceiling fight this past summer (Barr, 1/3).