Healthcare provider stocks are falling out of favor as higher operating expenses and renewed debate over patient subsidies pressure earnings across the sector. Hedge funds have responded by turning aggressive sellers, building short positions in U.S. healthcare providers, especially dialysis and hospital operators, where shorts now outnumber long positions by roughly eight to one.
DaVita (DVA) sits at the center of that bearish trade. Short interest in the dialysis operator climbed to about 11.6% of its float by year-end, up roughly 12% in just one month, putting it among the most shorted names in the S&P 500 ($SPX).
