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Byline: CRAIG SHAW
The Nasdaq composite limped to a 4.1% loss on massive trade Monday, its lowest close in five years, as technology shares slumped on worries about corporate accountability.
Medical stocks tumbled. Dianon Systems cratered 17.09, or 32%, to 36.33 on more than 10 times its normal volume after the pathology testing firm said proposed changes to Medicare payment policies could hurt 2003 earnings. Fellow anatomic pathology service provider AmeriPath dropped 1.28 to 21.15 on 3 1/2 times normal trade. It hit lows not seen in more than a year.
Dianon said revisions to doctor reimbursements may reduce 2003 earnings by 10%, or about 25 cents a share. The company reiterated previously stated guidance for 2002. It gets 43% of its revenue from Medicare reimbursements, analysts said. Ameripath gets 21%.
Inamed plunged 6.28, or 23.2%, to 20.79 on five times normal trade. The maker of breast implants, anti-wrinkle products and obesity treatment devices said Chief Financial Officer Kate Falberg resigned.
Advisory Board fell back into its base, dropping 2.72 to 33.52 on twice its normal trade. The health care ...