Shares of HealthSouth (HLS) rose to a 52-week high on Friday after the post-acute healthcare services provider on Thursday reported first-quarter results that topped analysts' top and bottom line estimates.
The stock traded as high as $46.58 on Friday, later changing hands at $46.19, up 6.2%.
On an earnings call, HealthSouth CEO Mark Tarr said the company is monitoring the legislative process around the Affordable Care Act, adding that the company does not need to take a position on any repeal and replace legislation at this time, "nor does its lack of universal support in Washington causes us immediate concern."
Tarr said the Affordable Care Act does not have a direct impact on the key Medicare policy areas that enable the company to provide care and services to its primary patient.
HealthSouth's main concern about the Affordable Care Act, he said, "is connected to the reimbursement cuts to which hospitals including our inpatient rehabilitation hospitals are subjected."
Birmingham, Ala.-based HealthSouth reported adjusted earnings per share of 70 cents, up nearly 15% year-over-year, and net operating revenue of $974.8 million, up 7.1% from the year-ago period.
Analysts had forecast adjusted EPS of 65 cents on revenue of $960 million, according to FactSet Research Systems.
"The quarter was driven by +1.6% growth in organic IRF (inpatient rehabilitation facility) discharges and +3.6% growth in revenue per discharge, and +8.4% growth in organic home health/hospice episodes, as revenue/episode decreased 1.4%," Raymond James analysts wrote in a Friday note.
The decrease in revenue per episode stemmed from Medicare reimbursement rate cuts partially offset by changes in patient mix, HealthSouth said.
For full-year 2017, HealthSouth reaffirmed its guidance of adjusted EPS of $2.61 to $2.73, adjusted Ebitda of $800 million to $820 million and net operating revenue of $3.85 billion to $3.95 billion.