Pediatrix Medical Group cuts 3Q profit guidance

The company, which provides clinical care for babies born prematurely, for expectant mothers and anesthesia care services, said it now expects third-quarter profit between 81 cents and 83 cents per share, down from prior guidance of 84 cents to 87 cents per share, set in August. Also, Pediatrix said it can no longer confirm guidance for profit between 84 cents and 87 cents per share for the fourth quarter.

Analysts polled by Thomson Financial, on average, expected third-quarter profit of 85 cents per share and fourth-quarter profit of 86 cents per share.

"During the 2008 third quarter, Pediatrix experienced a shift in reimbursement for patient care from commercial payers to government payers," the company said in a statement.

Also, a decline in patient volume prompted the cut in guidance, the Pediatrix said.

The company's third-quarter ended Sept. 30 and it has not yet scheduled the release of those financial results. It will hold a conference call to discuss the cut guidance Wednesday morning at 10 a.m.

In September, Pediatrix said it will change its name in 2009 to Mednax to reflect the expansion of its services beyond pediatric and maternal health care services. It will also change its symbol to "MD" from "PDX" on the New York Stock Exchange.

The company and its affiliated corporations employ more than 1,100 physicians in 32 states and Puerto Rico.

Shares of Pediatrix closed at $53.92 Tuesday.