Shares of Health Management Associates fell sharply yesterday after the Naples, Fla.-based hospital operator disclosed its reception of two federal subpoenas, according to a Bloomberg Businessweek report.
Shares fell 57 cents, or 6.5 percent, to $8.20 in afternoon trading yesterday. A market analyst said companies can expect stocks to fall in such situations, saying “investors blow these events (subpoenas) out of proportion,” according to the report.
One subpoena requested information on the company’s physician referrals and ownership and management of its whole-hospital physician joint ventures. Another requested information on emergency room management, including the use of Pro-Med software.
Read the Bloomberg Businessweek report on Health Management Associates.
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