Why Mednax Is Crashing 21.2% Today
Shares of Mednax (NYSE: MD) were tumbling 21.2% at 12 p.m. EST Thursday after management reported fourth-quarter earnings per share (EPS) that fell shy of industry watchers' expectations and that the nation's largest insurer, UnitedHealth Group (NYSE: UNH) is cancelling contracts with its physician groups.
Mednax is one of the biggest providers of neonatal and anesthesia services to medical facilities. Its revenue has climbed thanks to acquisitions of smaller provider groups. Unfortunately, higher costs associated with paying its specialists have created headwinds to its profit growth.
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Source Fool.com
