Some Hospital Stocks Could Prosper Under Universal Healthcare

Many healthcare analysts agree that any federal legislation mandating universal coverage for Americans would benefit hospitals and acute care clinics. But the publicly traded providers that have the most to gain are Health Management Associates, Universal Health Services and Community Health Systems, according to a report by Standard & Poor’s analyst Jeffrey Englander.

Englander said these companies have the most to gain because they serve markets with a high percentage of uninsured people and any plan that covers the previously uninsured “would help lessen or eliminate the instances of bad debt and charity care now delivered to the uninsured or underinsured,” Englander wrote.

HMA has a high percentage of its beds in Texas where 24.1 percent of the population is uninsured and in Florida were 20.3 percent of the population doesn’t have health coverage.

Universal Health Services also has a high percentage of beds in Texas and Florida, but it also has a significant number of beds in California where 18.5 percent of the population is uninsured. Meanwhile, Community Health Systems serves California, Florida, Texas and Illinois, where 13.2 percent of the population is uninsured.

Englander, however, is not bullish on Tenet Healthcare Corp., which has high exposure in California, Florida and Texas.

Englander said any benefit to hold Tenet “will be offset by other fundamental problems facing the company.”