By John Kell
Shares of hospital operators surged Thursday after the U.S.
Supreme Court upheld the constitutionality of the Obama
administration's health-care reform legislation.
The court said Congress was acting within its powers under the
Constitution when it required most Americans to carry health
insurance or pay a penalty--the provision at the center of the
two-year legal battle. Upholding the individual mandate benefits
hospitals because more Americans having health-care coverage would
lighten the providers' load of unpaid bills.
Shares of HCA Holdings Inc. (HCA), the largest private-sector
hospital operator in the U.S., rose 8.2% to $28.78 in recent
trading. HCA facilities provide about 4% to 5% of all domestic
inpatient care.
In a statement, HCA said, "We will continue to work with
patients, payors and the government to ensure a smooth transition
as the provisions of the law are enacted. We are pleased that
millions of Americans will have coverage for better access to vital
medical services, preventive care and acute care."
Elsewhere, Universal Health Services Inc. (UHS) gained 3.8% to
$40.72, Community Health Systems Inc. (CYH) added 7.1% to $27.32,
Tenet Healthcare Corp. (THC) rose 4.4% to $5.20, LifePoint
Hospitals Inc. (LPNT) jumped 4.4% to $40.15 and Health Management
Associates Inc. (HMA) increased 8.1% to $7.43.
--Jon Kamp contributed to this report.
Write to John Kell at john.kell@dowjones.com