Jim Cramer Is Worried About HCA Healthcare, Inc. (HCA) Due To Medicaid Cuts

We recently published a list of Jim Cramer Says “We Have No Idea What’s Really Going To Happen” and Discusses These 12 Stocks. In this article, we are going to take a look at where HCA Healthcare, Inc. (NYSE:HCA) stands against other stocks that Jim Cramer discusses.

HCA Healthcare, Inc. (NYSE:HCA) is a mega-American hospital operator. Unlike its peer Tenet Healthcare, Cramer has discussed the firm in 2025. He remarked in March that he believed the shares had been punished enough. Since Cramer’s comments, HCA Healthcare, Inc. (NYSE:HCA)’s shares have gained 11.9%. The stock jumped by 4.9% in mid-May as while Republicans did share their estimates to reduce healthcare spending, the reduction wasn’t as drastic as some feared. However, a drop in spending is still on Cramer’s mind when it comes to HCA Healthcare, Inc. (NYSE:HCA). Here’s what he said:

“The ones I’m [inaudible] worried about, I’m worried about HCA. . .on the cutback in Medicaid. Because [it thrives] on Medicaid. . . .because they’re gonna delay reimbursement or they’re going to lower reimbursement. Because Medicaid, Medicaid is cut back.”

A team of healthcare professionals in lab coats and masks meeting at a hospital ward.

L1 Capital mentioned HCA Healthcare, Inc. (NYSE:HCA) in its Q1 2025 investor letter. Here is what the firm said:

“HCA Healthcare, Inc.’s (NYSE:HCA) share price partially rebounded in the March 2025 Quarter, and was the only company to positively contribute over 1% to the Fund’s quarterly returns. We outlined in the December 2024 Quarterly Report that HCA’s share price had over reacted to concerns that healthcare policy under the Trump administration would be materially adverse for HCA. We took advantage of the market concerns to add to our investment in HCA at a share price well below our assessment of fair value, and it was pleasing to see a partial recovery in the share price during the March 2025 quarter. Six other companies each positively contributed 0.5% or greater to the Fund’s returns, across a diverse range of industries. We believe our unique approach to assessing quality businesses of varying size across a number of diversified sectors provides the opportunity to deliver strong risk adjusted returns in a range of market conditions.

As mentioned earlier, we added to HCA when its share price was below our assessment of fair value. With HCA’s share price increasing substantially, both absolute and relative to market movements, we have recently trimmed the holding. HCA remains one of the Fund’s larger investments.”

Overall, HCA ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of HCA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HCA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.