Stocks For Investor-Owned Hospitals, Digital Health Companies Take Hits
Also in the news, more detail on the decision by the U.S. Court of Appeals for the District of Columbia Circuit to reverse a lower court's ruling on special Medicaid funding for safety net hospitals.
Hospital, Health Tech Company Stocks Fall Faster Than The Market
Shares in nearly all the investor-owned hospital chains shed value at higher rates than the Dow Jones Industrial Average and S&P 500 on Wednesday, which declined 3.1% and 2.9%, respectively. Tenet Healthcare Corp. saw the biggest drop among its peers. Shares of the Dallas-based company shed nearly 8% of their value on Wednesday. Franklin, Tenn.-based Community Health Systems saw its share price slide 7%. (Bannow and Cohen, 8/14)
Hospitals' DSH Funding Limited By Federal Appeals Court
Hospitals that care for a large share of Medicaid, low-income and uninsured patients stand to receive less funding from the federal government after the D.C. Circuit reconsidered how Medicaid disproportionate-share hospital reimbursement is calculated. A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit reversed a lower court and reinstated a 2017 rule establishing that payments by Medicare and private insurers are to be included in calculating a hospital's DSH limit, ultimately lowering its maximum reimbursement. (Kacik, 8/14)