By Russ Britt, MarketWatch

LOS ANGELES (MarketWatch) Investors in hospitals started heading for the exits in the wake of President Barack Obamas lackluster debate performance by selling off shares in virtually all companies in the sector early Thursday.

With the prospect that Obama who spearheaded the health-care overhaul bill that gives aid to hospital balance sheets could be vulnerable in his re-election bid against Republican Mitt Romney, shares plunged even though the broader market enjoyed substantial gains.

The Dow Jones Industrial Average /quotes/zigman/627449 DJIA +0.68% was up more than half a percent, as was the S&P 500. /quotes/zigman/3870025 SPX +0.67%

A review of Wednesday night's debate between Mitt Romney and President Barack Obama, and a look at how to get a handle on health-care spending.

Most analysts agreed that Romneys aggressive tack in Wednesdays debate gave him the edge over the incumbent Democrat. Romney has vowed to repeal the health-care bill, which would force hospitals to return to the practice of writing down large chunks of revenue due to those unable to pay for medical care.

Thats making investors nervous, since the debate raised the prospect that Romney could unseat Obama.

By requiring more people to get coverage, the health-care overhaul bill is expected to cut back on the bad debt that virtually all hospitals record on their balance sheets, since they cant turn away patients in emergencies.

In a morning note to clients, CRT Capital Group analyst Sheryl Skolnick said: After an at-best lackluster and at-worst pitiful performance by President Obama in last nights debate, health care investors have to be wondering this morning whether the reform-on play of the last several weeks is the right one going into the Nov. 6 election.

She added: Investors who are long hospital stocks this morning should be thinking, Thanks a lot, Mr. President, at least in our view.

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Health-care Stocks: After debate, hospital investors head for exits