Intuitive Surgical falls as Obamacare concerns rekindle medtech demand debate

July 17 (Reuters) - Intuitive Surgical shares slid about 13% to hover near their lowest in more than two years on Friday after the surgical robot maker warned that changes to Obamacare plans could dampen demand for surgeries, and stuck to its annual procedure growth outlook.

The warning revived concerns over procedure volumes as a fallout of the loss of enhanced subsidies under Affordable Care Act or Obamacare plans, a risk Abbott brushed off as a "flawed assumption" a day earlier.

HCA Healthcare, the largest for-profit U.S. hospital operator, earlier this week flagged softer surgical demand and a rise in uninsured patients as pandemic-era ACA subsidies expired.

"We thought medtech was set for a relief post ABT (Abbott) print," Evercore ISI analyst Vijay Kumar said, adding that softness in Intuitive's U.S. procedures, which is slowest in three years, rekindles the debate.

Stryker shares fell more than 3%, while other medtech firms Boston Scientific slipped 1.4% and Medtronic was marginally down. Abbott was up 2%.

Intuitive is set to lose nearly $14 billion from its market value, if losses hold.

The selloff appears "increasingly overblown," Leerink Partners analyst Mike Kratky said, even as insurance-related changes add uncertainty to U.S. procedure growth.

Intuitive expects 2026 worldwide da Vinci-assisted procedure growth to come near the midpoint of its forecast of 13.5% to 15.5%.

Da Vinci systems are used in a broad range of procedures, including weight-loss surgeries.