The first quarter earnings from the Brentwood, Tennessee-based rural hospital operator LifePoint exceeded previous earning estimates by $70 million and set its stock surging, as well as the stocks of other hospital operators.

LifePoint reported that for the first quarter ended March 31, 2014, its revenues from continuing operations were $1,007.2 million, up 8.2 percent from the $931.1 million it earned in the first quarter of last year. Adjusted EBITDA for the first quarter, increased 6.2% to $145.8 million compared with $137.4 million for the same period a year ago.

Hospitals have faced a challenging operating environment in the lead up to the implementation of the Patient Protection and Affordable Care Act (ACA) individual mandate and its promise of lots of newly insured healthcare consumers. Besides across-the-board payment cuts tied to the Balanced Budget Act’s sequester, they’ve faced low rate increases from commercial payors, more patients’ care being covered by governmental payors, an increase in high-deductible health plans that lower healthcare demand, a fall in inpatient volumes as more care is shifted to the outpatient setting, mandated investments in health IT, and concern over payment denials due to the two-midnight rule on when an inpatient stay is appropriate.

However, the government’s announcement of higher than expected enrollment in ACA insurance exchange plans earlier this month boosted hospital stocks, and LifePoint noted in its first quarter financials that the insurance exchanges along with Medicaid expansion were starting to positively impact its business.

“We had a good start to 2014, with over $1 billion in revenues driven by our disciplined growth strategy,” noted William F. Carpenter III, chairman and chief executive of LifePoint Hospitals in a press release. “Medicaid expansion and insurance exchange enrollment are each yielding participation rates at the high end of our reform estimates, and we are well positioned to capitalize on these trends moving forward.”

LifePoint also reported that it has made progress on its previously announced acquisitions, and pointed to its work on both cost management and quality improvement as reasons for its better than expected earnings.

Its stock started rising rapidly on Thursday in anticipation of good results and surged Friday. At midday, the stock was close to exceeding its 52-week high of $57.03.

Fellow for-profit hospital operators Tenet Healthcare based in Dallas, Texas, and Community Health Systems based in Franklin, Tennessee also saw major gains in their stock price on news of LifePoint’s earnings. Tenet’s stock was up more than 9 percent and Community Health Systems, the nation’s largest for-profit hospital operator, was up more than 6 percent. Those companies’ first-quarter financials are due out May 5 and May 6 respectively.