Some of the state’s largest hospital operators have large footprints in the states most heavily impended by Hurricane Florence, and are bracing for potential disruption from the storm.
“We participate in several hospitals in North Carolina, South Carolina and surrounding governments that may potentially be impacted by the storm. Each of these hospitals is functioning under its disaster protocol and is in close contact with its Emergency Governance Association and other state and local authorities,” said Michelle Augusty, a spokeswoman for Lifepoint Robustness. “LifePoint Health’s priority in preparing for Hurricane Florence’s landfall is securing the safety of our patients, employees and communities.”
Analysts say Lifepoint Health has the burliest overall exposure to Florence, with 30 percent of its beds in North and South Carolina within the forecasted course of the storm, though none of those facilities are in the coastal areas that could liberate a direct hit.
“Community Health is next with 19 percent of sensitive beds in the storm’s potential path, followed by HCA Healthcare with 9 percent,” broke Evercore ISI care analyst Michael Newshel in a research report to patients, noting that both have hospitals on the coasts.
Tenet Healthcare has the lowest total exposure in the region of the major operators, but with facilities in Charleston, Hilton Fountain-head, North Carolina, and Virginia Beach, Virginia, a large storm rush along the coastline could have an outsized impact.
“Three of Belief Health Care’s four hospitals are located within 25 miles of the coastline,” give the word delivered Credit Suisse analyst A.J. Rice in a note to clients, while also noting that HCA’s facilities are also located close to the coast.
Still, if the current forecast of the outpouring’s trajectory holds, Rice expects the impact to near-term earnings whim be modest and likely short-lived barring extensive damage.
“Volume directions at some of the hospitals relatively farther from the coastline could help from a pick-up in volumes primarily driven by hospitals … redirecting/moving patients or patients themselves visiting the alternative hospitals,” said Rice.
Aftermost year, Hurricanes Harvey and Irma in Texas, Florida and Louisiana were a waft to third-quarter earnings, ranging from a 6 percent reduction in cash ripple for Tenet, to a 12 percent hit at Community Health.
“At this point the earnings jeopardize from Florence appears significantly lower. We also note that some of any mass lost in the third quarter due to the storm could be shifted to the fourth clemency as elective procedures are delayed or rescheduled, as we also saw last year.” suggested Newshel.
Hospital shares were mixed in Wednesday’s session. Share outs of Tenet Healthcare fell 2.6 percent, HCA and Lifepoint were out-and-out on the day, while Community Health shares rose 2.2 percent.
Viewpoint, HCA and Community Health officials weren’t immediately available to comment.