Hospital operators fall after Raymond James cuts ratings on near-term challenges
** Shares of hospital operators HCA Healthcare HCA.N, Tenet Healthcare THC.N and Community Health Systems CYH.N fall between 1% and 6% in early trading
** Brokerage Raymond James downgrades hospital group ahead of potential headwinds including an expected reduction in 2026 in the number of patients seeking hospital services under Obamacare plans, which currently represent a high single digit percentage of revenues
** Downgrades HCA to "market perform" from "outperform" and THC to "outperform" from "strong buy" citing that their revenues are most likely to be hurt due to a reduction in volumes
** Brokerage expects about 20% drop in Obamacare patients across the sector, due to a new republican run government, and additional subsidies related to these plans for hospitals ending in 2025
** Brokerage also cuts CYH to "underperform" from "market perform" and maintains rating on UHS at "market perform"
** Adds that potential reform of state-backed Medicaid insurance plans is another point of risk for hospitals as patients from these plans have represented an improving source of earnings and margins
** As of last close, HCA up 20.5% , UHS up 29%, CYH up 13% and THC up 90%
Reporting by Sriparna Roy and Bhanvi Satija in Bengaluru
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