Hospitals Attract Investors’ Attention
Reuters: Analysis: Hospitals Find A Few Defenders On Wall Street
Such construction plans are just one example of how publicly traded U.S. hospital chains are preparing for a new era in healthcare. In many cases, operators like Community Health and Health Management Associates Inc are becoming turnaround strategists, taking over struggling nonprofit community hospitals for bargain prices and investing in new technology for the promise of a new revenue stream. Their actions are drawing new interest from some investors, who are lured by the companies' historically low stock valuations and the expectation that their expanding clout and focus on efficiency will help solve a growing national healthcare crisis (Kelly, 6/21).