Here’s Why Healthcare Provider Stocks are Tanking Now
Quick answer: Medicare announced last Friday that it would be cutting payment rates to skilled nursing facilities by 11% next year, in an effort to curtail rising medical expenses. The decision adjusts for an “unexpected spike” in nursing-home payments this year. Healthcare provider stocks (NYSE:XLV) are getting dumped across the board this morning as investors worry that they will have to take on significant added costs. Here’s a look at how a panel of popular stocks are performing:
Sun Healthcare Group (NASDAQ:SUNH) -52.0%, Skilled Healthcare Group (NYSE:SKH) -38.0%, The Ensign Group, Inc (NASDAQ:ENSG) -21.23%, National HealthCare Corporation (AMEX:NHC) -12.21%, AdCare Health Systems (AMEX:ADK) -4.87%, Five Star Quality Care (AMEX:FVE) -5.86%, and Sunrise Senior Living (NYSE:SRZ) -3.74%.