Med­nax earn­ings fall $13 mil­lion

Sun Sentinel Broward Edition - - MONEY - By Ron Hurt­ibise Staff writer

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

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