In the most recent trading session, stocks of hospitals and managed-care were mostly trading low, led by companies which are Medicaid focused. Wednesday's market, overall as well, witnessed a downward trend after Republican Scott Brown won the Massachusetts special election. He will be filling in the late Edward Kennedy's Senate seat.

With Mr. Browns victory, major threat has been posed to the Democratics’ initiative to revamp the American health-care system, as it will manage to eliminate the yet unmatched majority in the Senate.

Medicaid-related managed-care shares fell on the news, as these businesses stand to benefit the most from the healthcare system's overhaul, because it would effectively expand the Medicaid program over the coming few years.

Amerigroup Corp. declined by 6.2% to $22.78, despite the fact that Wells Fargo has shared that it is expecting revenue to grow by about 10-15% a year, even if there are no reforms introduced.

Centene Corp. slipped by 6.6% to $19.62 and Molina Healthcare Inc. slipped 3.8%.

Hospital stocks as well, on the other hand, were somewhat hurt. While shares of Tenet Healthcare Corp. lost 3.1% of their value, those of Health Management Associates Inc. lost 2.8%.

"(With) Brown's election, health-care overhaul is at best going to be much smaller than the administration had hoped, and the possibility of no overhaul at all is now on the table", said a Miller Tabak analyst.