Below here is the most recent Total Market Capitalization (Number of Common Shares Outstanding X Market Price Per Share) per the Google Finance website as compared with the most recent Net Assets Book Value for each of them.
What the stock market is saying is that these 15 Hospital stocks in total are trading at an incredibly huge 5.17 times book value of their Net Assets. Since common stocks trade based on future earnings, this also shows that the astute stock market is signaling that the future earnings of these Publicly-Held Hospitals will be just incredibly robust under the Affordable Care Act.
This is especially the case since when the Affordable Care Act fully kicks in, future Hospital Operating Income will be bolstered by both many of the Uninsured getting insurance and by the many of the Underinsured getting much better insurance.
And for Publicly-Held Hospital Organization operating hospitals in States electing to expand Medicaid, this future Hospital Operating Income will be exceptionally robust.
|State||Market||6-30-13||Book Value||Net Asset|
|Hospital Organization||HQs||Capitalization||Net Assets||Amount||Book Value|
|mil $s||mil $s||mil $s|
|Fresenius Medical Care||MA||40,690||9,110||31,580||4.47|
|DaVita Health Partners||CO||12,340||4,282||8,058||2.88|
|Universal Health Services||PA||7,890||3,044||4,846||2.59|
|Community Health Systems||TN||4,180||3,022||1,158||1.38|
|Health Management Associates||FL||3,800||1,094||2,706||3.47|
|Select Medical Holdings||PA||1,250||789||461||1.58|
|IPC The Hospitalist Co||CA||891||286||605||3.12|
|Total all 15||113,191||21,904||91,287||5.17|
As you can see from the above chart, these 15 US Publicly-Held Hospital Organizations have a Total Common Stock Market Capitalization of $113.191 bil at the most recent date, $91.287 bil above their Total Net Assets.