HCA falls after BofA downgrades to "neutral" on Medicaid cuts but says less exposure than peers

Brokerage BofA Global Research downgrades hospital operator HCA Healthcare HCA.N to "neutral" from "buy", trims PT to $394 from $410

New PT still implies a ~6% upside to the stock's last close

Shares of HCA fall 2.9% to $361.17

The recently passed Reconciliation Bill includes cuts to Medicaid, and ACA exchanges are expected to reduce patient volumes and increase bad debt for hospitals, BofA says

BofA believes HCA is less affected by these changes than other hospital companies, partly due to its scale; however, it will still face pressure on growth and earnings

The expiration of enhanced exchange subsidies could add further pressure starting in 2026- BofA

As of last close, HCA stock up 20.3% YTD