Shares of nursing homes and hospitals, including Irvine-based Sun Healthcare Group Inc. and Skilled Healthcare Group Inc. in Foothill Ranch, were down today on worries about possible Medicare cuts.
Skilled shares were down 4% to a market value of about $199 million, while Sun shares had dropped 2% to a market value of $92 million.
Citigroup analyst Gary Taylor released a research note that said any company that was heavily reliant on Medicare funding could be vulnerable. He also downgraded several companies, including Sun, in the note.
Other companies also saw their stocks fall, including Dallas-based Tenet Healthcare Corp., owner of three Orange County hospitals.