Last week's passage of the American Health Care Act by the U.S. House of Representatives has done nothing to spook those investing in hospital stocks.
Through the trading day Friday, the share prices of the four largest investor-owned hospital chains have all crept up since the House approved the ObamaCare repeal on May 4.
Granted, the legislation still has a hard row to hoe through the Senate before it, or a bill with modifications, can make its way to President Donald Trump for his signature.
The House bill came under withering opposition from hospital and physician trade groups concerned that it would lead to Medicaid cuts and millions losing their new-found insurance under the Affordable Care Act.
But so far, hospital investors are taking the legislation in stride. The share prices of HCA Holdings, Community Health Systems, Tenet Healthcare and LifePoint Health each have risen a percent or two in the past week.
CHS has made the biggest move, increasing to $10.16 per share on Friday from $9.61 at the close of trading on May 4.
The walk-up to the House ACA repeal, likewise, has done little to dampen healthcare hiring or hospital borrowing.
Healthcare hiring rebounded in April with 19,500 jobs added to the industry, a big increase over March in league with a solid national jobs gain for the month.
Kaiser Permanente also fueled a hot market for hospital bonds when it raised a system record $4.4 billion from a series of three bond offerings this month.
Mizuho Securities analyst Sheryl Skolnick said in a statement that investors may be betting that the Senate will polish off the hard edges of the House bill, if it chooses to pass it at all.
"It's an interesting development," Skolnick said. "The general sense is that with a more moderate Senate, a final bill (if there is one) will have to be substantially better than the House version. In other words, we've gotten through the worst."