New Rule Seeks to Provide More Efficient Health Care

In final rules released by the U.S. Department of Health and Human Services, hospital chains may be eligible to receive bonuses as high as $1.9 billion through joint ventures intended to improve care and cut health-care costs.

Called by the government as “accountable care organizations for the elderly and disabled”, they will share in savings with the government. Participants will discontinue returning money to the government after failing to reach savings targets. Now they will be required to meet fewer quality measures disclosed by the government back in March.

The rules come in a health care law that will save $940 million in three years and is seen as a win for hospitals, clinics and doctors’ practices.

Community Health Systems, Inc. (NYSE:CYH) may be eligible to receive the bonus and its stock closed up 3.78% to $18.66 on Friday. Shares are down 50% year to date. The stock has traded in a 52-week range between $14.61 and $42.50.

Next read: Healthcare Sector Review: Winning and Losing Stocks on Oct 21st>>

More from The Cheat Sheet