Yeah, I saw it. Another buying opportunity?
NEW YORK -(Dow Jones)- Shares of home-oxygen providers dropped in
their latest reaction to the roller-coaster ride regarding possible cuts
in Medicare reimbursement.
The latest rumor has the Clinton administration seeking a 40%
reduction in Medicare reimbursement, according to industry observers.
The federal Health Care Financing Administration, which runs Medicare
and Medicaid, first proposed a 40% cut in 1995. Since then, shares of
home-oxygen providers have risen and fallen as speculation about the
size of the potential rate cut has changed.
On Wednesday, American HomePatient Inc.'s (AHOM) shares closed down
$2.875, or 13.1%, to $19.125 on Nasdaq Stock Market on volume of
913,200. Average volume is 111,500.
Rotech Medical Corp.'s (ROTC) shares dropped $3.125, 16%, to $16.375,
on Nasdaq volume of 1.2 million. Average volume is 190,300.
Lincare Holdings Inc.'s (LNCR) shares fell $2.875, or 7.1%, to
$37.875 on Nasdaq volume of almost 1.1 million. Average volume is
238,300.
Apria Healthcare Group Inc.'s (AHG) shares slipped $1.125, or 6%, to
$17.34 on the New York Stock Exchange, on volume of 641,300. Average
volume is 252,800.
Other Nasdaq stocks that fell on the news included Invacare Corp.
(IVCR), down $.125 at $22.25; Home Health Corp. of America (HHCA), down
75 cents at $8.875; and Pediatric Services of America Inc. (PSAI), down
50 cents to $18.50.
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