Pediatrix reports gains, issues warning

FORT LAUDERDALE — Pediatrix Thursday said first quarter profit increased to $33 million, or 67 cents a share, on revenue of $246 million. But the company warned that it might not be able to hit profit projections for the year because of declining patient volume.

A year ago, Pediatrix earned $26 million, or 58 cents a share, on revenue of $211 million.

Including a one time gain from the sale of assets, earnings for the 2008 quarter totaled $%6 million, or $1.14 a share.

“We continue to grow our business, with solid contributions from acquisitions and ongoing improvements in reimbursement from third-party payers during this most recent quarter, and these results reflect our ability to continue to manage our operations with increased efficiency,” CEO Roger J. Medel said. “Our results are being affected by lower neonatal volume, which is related to a lower rate of growth of births at our hospitals throughout this year.”

The company said if the lower patient volume continues, it will not be able to hit earnings projections for the year.

That bit of news put investors into a sell mode: Pediatrix shares were down $10.38, or 15.12 percent, in afternoon trading on the New York Stock Exchange.

Pediatrix owns doctor practices that provide a variety of neonatal services.