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 births and 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.

The financial results will be discussed in an investor conference call and webcast on May 4 at 10 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 2.1 percent decline in neonatal intensive-care unit patient days at hospitals where Mednax provides neonatal services. That decline was 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.

Mednax provides maternal-fetal, pediatric and anesthesia services through a network of more 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.