Shares of hospital operators sold-off Wednesday on delay in health care reform.
Shares of Tenet Healthcare (Fortune 500), which operates hospitals and outpatient centers in 11 states, fell 4% Wednesday. ,
The Treasury Department said Tuesday it will delay a provision in the law that requires businesses to provide their workers with health insurance or face fines.
The decision came after businesses complained about the complexity of the law's reporting requirement, which applies to firms with more than 50 full-time employees that don't already provide coverage.
Critics say the law will cause small businesses to cut back on full-time workers and hire more part-timers to avoid penalties. But the delay is not expected to have a major impact on profits for big insurance companies.
"I don't think this is a game changer for the industry," said Les Funtleyder, a health care strategist at Poliwogg, a New York-based investment firm.
Funtleyder said the provision was seen as a "marginal positive" for insurance companies, although the decision to delay raises questions about what other aspects of the law may be changed.
"There's probably some uncertainty discount being built into the stocks," he said.
Funtleyder said industry analysts are more concerned about the implementation of federal health insurance exchanges, which are supposed to take effect Oct. 1.
While a few state-run exchanges are moving forward, he said federally managed exchanges in about 30 states appear to be behind schedule.
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