Healthcare stock prices were up a bit last year, but Wall Street soured on the healthcare industry when compared with 1995's blistering pace.
Year-end healthcare industry share prices were up just 2.7% for calendar 1996, down from the 40% increases in 1995, according to an analysis done for MODERN HEALTHCARE by WDI Capital Markets, a Hilton Head, S.C.-based healthcare advisory and investment banking firm.
"Healthcare stocks have taken a major, major dump across the board," said John Cumming, chief executive officer of WDI. "All of this consolidation we're seeing just may not be working."
Hospital stock prices gained an average of 15% in 1996, less than half their 32% gain in 1995.
Leading the pack in 1996 were imaging services, with a 43.5% increase in share prices, and rehabilitation services, which saw share prices jump 32.3%.
WDI's year-end share price performance analyses cover the performance of 837 public healthcare companies in 34 market segments.