UnitedHealth Group Inc., the biggest U.S. health insurer, said profit fell 7.8 percent, hurt by cuts to its Medicare Advantage program for elderly and disabled Americans. The shares declined the most in six months.
Health insurers under pressure to keep premiums low are eliminating some hospitals from coverage in a cost-cutting strategy that threatens to freeze out centers that provide specialized care, limiting patient options.
Community Health Systems Inc. ’s unsolicited $3.3 billion offer for Tenet Healthcare Corp . may prompt rival suitors as it seeks to become the largest U.S. hospital operator. Tenet’s shares rose 55 percent.
Amedisys Inc., Gentiva Health Services Inc. and other in-home health-care providers tumbled in New York trading after the U.S. Medicare program announced plans to cut company payments by 1.5 percent on average in 2014.
Investors betting on HCA Holdings Inc. and its hospital-company brethren needn’t worry about patient admissions or earnings. To see where the stocks may go, just watch President Barack Obama’s poll numbers.
TPG Capital, the Texas buyout firm started by David Bonderman two decades ago, is exploring the sale of Iasis Healthcare Corp. and enlisted Bank of America Corp. to find buyers, said people familiar with the process.