Triad Plunges After Taking Charge - TheStreet

Triad

(TRI) - Get Report

plunged 15% Wednesday after the hospital operator said a big writedown would slash third-quarter earnings.

Late Tuesday, the Plano, Texas, company said it would take a $50 million pretax charge to add to the estimated allowance for doubtful accounts on its balance sheet. Triad said the move would cut 41 cents from third-quarter earnings.

"The national healthcare environment has changed," said CEO James Shelton. "A weak job market and rising healthcare costs have led to growth in the number of uninsured patients and an increase in insurance co-payments and deductibles."

Triad said that including the charge, it expects to post third-quarter earnings of 9 to 14 cents a share. The Wall Street consensus is 48 cents, going by Thomson First Call.

On Wednesday, the stock slumped $4.87 to $28.