UHS - HCA guidance cut sparks selloff among hospital peers

Major hospital operators are trading lower in the premarket Friday after HCA Healthcare (NYSE:HCA), one of the largest in the business, trimmed its 2022 earnings guidance with its 1Q 2022 earnings. While HCA's (HCA) revenue for the period came ahead of expectations, earnings stopped short of the consensus as Chief Executive Sam Hazen cited pressure from labor costs. “In the first quarter, we had a number of positive volume and revenue indicators. Unfortunately, they were offset by higher than expected inflationary pressures on labor costs,” he said. While HCA has lost ~11%, other notable decliners, Universal Health Services (UHS), and Community Health Systems (CYH), have dropped ~4% and ~6%, respectively. Meanwhile, Tenet Healthcare (THC) has lost ~4% as the investors look past the company’s decision to keep its 2022 outlook unchanged with its 1Q 2022 results on Wednesday.

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HCA guidance cut sparks selloff among hospital peers