Health Management Associates Inc (HMA), Tenet Healthcare Corp (THC): Grey’s vs. Obamacare?

Page 2 of 2

Health Management Associates Inc (NYSE:HMA) lowered expectations for 2013 recently after previewing disappointing financial results for last quarter. This news dragged down its shares and also those of ommunity Health Systems (NYSE:CYH), Tenet Healthcare Corp (NYSE:THC), and HCA Holdings Inc (NYSE:HCA).

However, many analysts think Health Management Associates Inc (NYSE:HMA)’s problems aren’t applicable for the rest of the industry. The consensus opinion still appears to be that hospital stocks will flourish as Obamacare is fully implemented, because they won’t have to absorb costs from uninsured patients. And less potential competition doesn’t hurt, either.

Tune in later
Hospitals in the real world should do well under Obamacare — as long as they’re not owned by physicians. We’ll have to wait for the next episodes of Grey’s Anatomy to see how the fictional hospital fares.

It’s actually a shame that the good doctors on the TV show had to buy their hospital in the first place. Alas, the hospital was about to go under because of the financial repercussions of a lawsuit. Obamacare couldn’t help “Seattle Grace Mercy West” in that regard. While there are many provisions in the 906-page law, none of them address tort reform. Maybe that plot line will make it into next season.

The article “Grey’s Anatomy” vs. Obamacare? originally appeared on Fool.com.

Fool contributor Keith Speights has no position in any stocks mentioned — and, yes, he does sometimes watch “Grey’s Anatomy.” The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2