Community Health Systems (CYH) Stock Plunges on Court's Obamacare Ruling
NEW YORK (TheStreet) -- Community Health Systems (CYH) - Get Report stock is dropping 10.23% to $12.64 in late-afternoon trading on Thursday as shares of hospital operators retreat after a federal judge ruled against some of the funding for the Affordable Care Act.
The decision could put a source of hospitals' revenue at risk.
A judge for the U.S. District Court for the District of Columbia ruled that the Obama administration doesn't have the power to unilaterally fund a provision that has subsidized billions of dollars of insurers costs, Bloomberg reports.
The lawsuit was filed by the Republican-controlled House of Representatives, and alleged that the Health and Human Services and Treasury secretaries were spending "public monies not appropriated by the Congress."
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.
Community Health Systems's weaknesses include its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk.
You can view the full analysis from the report here: CYH
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
