(Bloomberg) — Community Health Systems Inc. (NYSE:CYH) shares fell as much as 33 percent after the hospital chain’s preliminary earnings report disappointed, leading analysts to cut their ratings on the stock because of diminishing benefits from the Patient Protection and Affordable Care Act (PPACA).
The stock fell to $29.04 at 9:36 a.m. in New York, down 28 percent. They had fallen to $27.10 earlier, the lowest intraday price since November 2012. HCA Holdings Inc. (NYSE:HCA), the biggest U.S. hospital chain, and Tenet Health Systems Inc. (NYSE:THC) also fell.
HCA said last week that its quarterly earnings would be hurt by an increase in labor costs and uninsured patients. The sustained poor results from hospitals suggest that the benefits of health reform in the United States have run out, said Sheryl Skolnick, an analyst with Mizuho Securities USA.