HCA Leads Hospital Higher on Medicare Deal expenses

HCA Holdings Inc. (HCA) and Tenet Healthcare Corp. (THC) led hospital stocks higher after the companies held that a settlement of a 13-year-old lawsuit over Medicare Plan payments would enhance revenue and HCA reported higher admissions.

HCA is the  biggest for-profit hospital chain, climbed 3.1 percent to $27.57 at the close of trading in New York, while Tenet, No. 3 in the industry, increased 5.3 percent to $5.35, after today’s declaration. Community Health Systems Inc. (CYH), the No. 2 hospital chain, achieved 4.7 percent to $22.39, for its biggest one-day advance in seven weeks.

HCA and Tenet will profit from an industry wide settlement over what the chains hold were underpayments from Medicare Plan, the U.S.-backed insurance program for the elderly and disabled. As stated by the companies in separate statements. HCA, based in Nashville, Tennessee, also held that similar-facility admissions rose 3.2 percent in the first quarter, suggesting the economic recovery in the U.S. may finally help hospitals.

HCA held that the lawsuit agreement signed April 5 will direct to a net revenue gain of $188 million while Tenet held that it expects net cash proceeds of $84 million. Though profits were reduced by a separate change in repayment announced by Medicare Plan last month, the proceeds beat projections the companies had made before reaching the deal, according to them.

For more information please visit us @www.medigap4seniors.com, or call us at 888-502-5553 to speak with one of our Medicare experts.

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