Hospital stocks enjoyed a rally on Wall Street Wednesday as Congress promised an orderly transition from the Affordable Care Act.
Dallas-based Tenet Healthcare had one of its best days in a year, rising $1.35 per share, or 9%, to close the day at $16.75.
Another struggling stock, Community Health Systems, found traction Wednesday. It rose 42 cents, or 7%, to $6.23 on the day.
HCA Holdings posted a gain of 3.6% Wednesday, while Universal Health Services finished the session up 2%.
The sector was bolstered by moderate tones from Vice President-elect Mike Pence and House Majority Leader Paul Ryan that the Congress would transition away from Obamacare without leaving 20 million of newly insured people devoid of insurance.
The Senate took its first vote on the way to repealing Obamacare. The 51-48 procedural tally broke mostly along party lines and officially begins debate on a special budget measure that is a precursor to a follow-up bill to repeal Obama's signature healthcare law.
Kentucky Republican Rand Paul opposed the measure since it endorses large budget deficits.
Once Wednesday's legislation passes both House and Senate, Republicans controlling Congress could pass the follow-up measure without the threat of a filibuster by Senate Democrats.
The vote came after both Vice President-elect Mike Pence and President Barack Obama trekked to Capitol Hill to rally their respective sides for the looming fight. The preliminary measure is on track to pass both House and Senate next week, but details on the binding repeal bill are still being worked out.
Lawmakers said that according to Pence, President elect Donald Trump would sign some orders to dismantle the ACA the day he takes office.
Pence did not specify what those actions would be. Ryan told reporters they would involve "transition relief."
The Obama administration says at least 8.8 million people signed up through Dec. 31 for 2017 coverage under the president's healthcare law. That's about 200,000 more than at the same point in the last open enrollment season but it will still be a stretch to meet the nationwide target of 13.8 million sign-ups.
