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US hospital shares rally as investors see reform boost

Reuters, January 8, 2014
Hospital shares climbed on Tuesday as investors focused on expectations that patients newly insured under the Affordable Care Act will make plans for doctor visits in 2014. Hospitals have been expected to get a boost in business from the healthcare reform law, but a slow signup on the new insurance exchanges muddied the outlook. On Monday, Community Health Systems Inc (CYH.N), the No. 2 U.S. hospital operator, said it expects the healthcare reform to provide a slight boost to 2014 earnings, rekindling investor hopes that the sector will see a pickup in demand after a weak finish to 2013.