This summer’s Covid surge was bad for hospital profits

This summer’s Covid-19 surge put a sizable dent in hospital finances, with two large investor-owned chains reporting lower revenue and profits in the recently ended third quarter compared to the same period a year ago.

Stocks in HCA Healthcare and Tenet Healthcare shed north of 10% and 30% of their value at times, respectively, on Friday following their underwhelming reports for the quarter, which ended Sept. 30. The companies collectively own more than 240 hospitals.

One of the biggest headwinds hospitals have had to contend with during the pandemic is the use of expensive travel nurses as staff nurses quit for higher-paying travel jobs, retired, or left the profession altogether.

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