JPM says US hospital operators to beat Q2 expectations

J.P.Morgan says HCA HCA.N, Tenet THC.N, Ardent Health ARDT.N and UHS UHS.N to beat Q2 expectations despite likely policy changes

JPM expects favorable volume trends due to higher utilization in Affordable Care Act exchanges and Medicaid on better reimbursement rates, stable supply and labor costs

Says Medicaid program funding pressure post-One Big Beautiful Bill Act to dent earnings but size, timing uncertain

Expects Medicaid enrollment to drop by ~5.9 mln by 2034 in 26 states where the companies operate

This year through last close, ARDT down ~15%; but HCA has gained ~27%, THC 41%, while UHS is up 2.3%