It Has Been a Good Year for Healthcare Stocks

In a 6-3 vote, the Supreme Court upheld federal subsidies for the Affordable Care Act in all states, including the 34 under federal exchanges.

With more patients covered under insurance, it will lessen the burden of the uncompensated. For starters, shares of Dallas-based Tenet Healthcare, operator of 80 hospitals and more than 400 outpatient facilities, increased more than 12 percent. Similarly, Hospital Corp. of America, and Universal Health Services gained almost 9 percent and 7.5 percent, respectively, following the ruling.

Providers also need to develop new sources of revenue to compensate for losses resulting from value-based reimbursement models.

Hospitals need to build new capabilities so that when markets flip to value-based care, they aren’t caught flat footed. The world is changing and, while for-profit hospitals have enjoyed a good run under FFS, they need to be prepared for value-based care,” said Phil Kamp, CEO at Chicago-based Valence Health.

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Maya Haynes is a dual-degree student Boston University in Boston, Massachusetts with majors in sociology and public health, and a contributor to Medical Groups. She is committed to making sure vulnerable populations in the United States are provided with the knowledge and resources to best plan and care for their families. She regularly volunteers at local preschools and community centers to assess the needs to of the populations she plans on serving.