THE REAL MOST ACTIVE NYSE Stocks Slump As Hospitals Fizzle.(MAKING MONEY)

Byline: CRAIG SHAW

NYSE stocks lost ground Thursday as GDP growth and factory data came in below estimates. The S&P 500 fell 0.6%, the Dow 0.4%. Heavier trade meant another distribution day, the fifth in eight sessions for the benchmark S&P.

Tenet Healthcare plummeted 10.22, or 26%, to 28.75 on its heaviest volume of the year. The No. 2 U.S. hospital chain has lost a staggering 42% this week.

Already stung by reports of overreliance on Medicare "outlier" payments, Tenet said U.S. prosecutors in California were investigating allegations two doctors at one of its centers conducted unneeded heart procedures. Tenet said it was cooperating with the probe and plans to conduct its own investigation. It said the probe involves "alleged false billings and unnecessary angioplasties, coronary bypasses and heart catheterizations by the two physicians."

Other hospital stocks also tumbled. The Medical-Hospitals group lost 9%, by far the worst industry of the day. Health care giant HCA Inc. crashed through its 50-day and 200-day moving averages, falling 3.99 to 43.49 on seven times normal trade. Triad Hospitals swooned 2.45 to 36.50. Universal Health Services declined 2.62 to 48.48.

HMO stocks also felt pain. Aetna beat profit estimates, but ...