Mednax earnings fall $13 million

Mednax stock plunged 8 percent Thursday on news that the Sunrise-based medical service provider expects to report a $13-million decline in net income for its first quarter of 2017.

Fewer birthsand higherthan-expected clinician salaries contributed to the income drop, the company reported.

Mednax stock ended the trading day off $5.39 to $61.30 on the New York Stock Exchange.

Thefinancial results will be discussed in an investor conference call and webcast onMay 4 at10 a.m., the release said.

According to preliminary results, overall revenue from the company’s operations rose to $836 million compared to $753 million in the first quarter of 2016, while net income fell to $55 million from$68 million.

Contributing factors included a 2.1percent decline in neonatal intensive-care unit patient days at hospitals where Mednax provides neonatal services. That declinewas driven by a 2.9 percent decline in total births in those hospitals.

Another factor was higher-than-expected expenses for salaries and expenses, primarily for nonphysician clinicians, the release said.

Mednaxprovidesmaternalpediatric and anesthesia services through a network ofmore than 3,725 physicians in 50 states and Puerto Rico. In January, Mednax announced it acquired Radiology Alliance, the largest private practice radiology group in Tennessee.

Mednax stock has a 52-week range of $59.36 to $76.96 a share. The shares have declined by about 3 percent in the last year.

rhurtibise@sunsentinel .com or 954-356-4071