Shares of Brazil’s largest publicly traded healthcare company soared on Monday after Supreme Court Justice Luis Roberto Barroso granted an injunction suspending a newly approved national nurse salary floor.

At 3:15 pm, Hapvida’s share price rose 2.16%. Rede D’Or’s, 3.79 percent. Martell Days, 4.08 percent. Dasa he is 2.88%.

Judge Barroso asked federal and health agencies to provide data on the impact of the action. There were several stakeholders who participated in the constitutional challenge originally filed by CN Saúde, representing hospitals, clinics and other service providers across the country.

They must do this within 60 days. Her 11 judges in the court then vote on the issue.

The new law, which plans to make the minimum wage about 30% higher than what is paid today for all professionals in the nursing sector, was approved by President Jair Bolsonaro on August 4 and was expected to come into force today.

Health care providers and local governments are trying to adjust regulations and budgets to cover the costs of the new legislation, but they don’t have enough resources to do so.

In this project, the estimated overall impact of the new law is R$16 billion annually, with R$5.7 billion on municipalities, states and public bodies. 5.4 billion reais to the private sector. Also, mainly to charitable service providers who serve patients under the SUS public health system, in addition he will provide 5 billion reais.

A survey of over 2,000 healthcare providers commissioned by a health sector entity two weeks ago estimated that 83,000 people could be laid off and 20,000 beds could be closed.

The new law, first proposed by senators from the Labor Party, the party of former president Luis Inacio Lula da Silva, was approved by Congress without citing the source of the funding.

Bolsonaro could have vetoed the minimum wage, but he didn’t do so for fear of repercussions before trying for re-election.

During Lula’s campaign blame the government The government’s economic team did not foresee how the new measure would be paid for, and fears the Supreme Court will force the federal government to bear the new costs of bailing out states and local governments.