(Health care story updated for market close on Tuesday)

WASHINGTON D.C. ( TheStreet) -- President Obama signed health care reform into law at a White House ceremony shortly before noon on Tuesday, but the photo op didn't help extend the recent rally in health care stocks.
Obama
President Obama

On Monday, hospital operators and Medicaid-focused health care providers posted big gains , led by Tenet Healthcare ( THC), Health Management Associates ( HMA), Centene ( CNC) and HMS Holdings ( HMSY). Many health-care-related names set new 52-week highs.

During Tuesday's session -- even as Obama looked more relaxed than in recent weeks as he basked in his victory -- investors were taking some of the short-term froth off the sector's recent gains.

The Dow Jones U.S. Health Care Index was marginally positive (about 0.4%) on Tuesday.

Shares of MedCath ( MDTH), which had rallied last week after an analyst upgraded the hospital operator on news that it would sell off its hospital assets , suffered the largest decline Tuesday, falling 1.7% at the close on Tuesday, and after hours trading in MedCath shares was nearing a double digit decline on Tuesday.

Shares of Health Management, meanwhile finished slat on Tuesday, after big gains on Monday. Community Health Systems ( CYH) finished down 1.9% on Tuesday, while Lifepoint Hospitals ( LPNT) was down marginally on Tuesday.

On Monday, Lifepoint, Community Health and Universal Health Services ( UHS) all rose by about 6% and all touched 52-week highs intraday.

Among health care service providers, HMS Holdings saw its share prices slip 2.6% on Tuesday afternoon, while Centene, and Amerigroup ( AGP) recovered after Tuesday morning declines to post marginally positive gains by the close on Tuesday.

JPMorgan indicated in note Monday that Amerigroup, Centene and Molina Healthcare ( MOH) were among the Medicaid providers that would benefit from the reform effort becoming law. Molina shares fell 0.5% on Tuesday. -- Reported by Eric Rosenbaum in New York

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