From Bloomberg Briefs, Leveraged Capital & Distress
Trump's Win May Shape Up to Be Loss for Hospital Operators
by Richard Bedard
The day after voters selected a winner of the U.S. presidential election, markets chose a loser: health care. High-yield bonds of hospital operators and insurers got pounded. Investors worried that a repeal of so-called Obamacare could end insurance coverage for millions of Americans and lead to lost revenue for the companies.
The health-care services industry has already been struggling, according to an index by the Polsinelli law firm that looks at the number of Ch. 11 bankruptcies of public and private companies with more than $1 million in assets. The index has been at an all-time high of 163.33 for two straight quarters. Some reasons are lawsuits and downward adjustments in government rates and payment delays, Jeremy Johnson
in the firm's New York office said in a Nov. 11 interview. "We think it's going to continue to be volatile for the next several years," he said.
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