Hospital operators set to end 2025 higher

Shares of hospital operators are poised to close the year on a high, buoyed by sustained demand for healthcare services

HCA Healthcare HCA.N stock gained 57.7%; Tenet Healthcare THC.N stock rose 59.5% - the third straight year of gain

Universal Health Services UHS.N rose 25.4% this year

For recent quarters, hospital operators are benefiting from higher utilization, underpinned by steady demand for surgical procedures, particularly among older adults, who are covered under the government's Medicare insurance plans

J.P. Morgan analysts said the strong start to Q4 signals consistent demand, partly driven by early purchases through ACA exchanges.

This is likely due to expectations that enhanced Advance Premium Tax Credits will expire next year amid broader policy uncertainty, they said