Total Renal’s Stock Falls on Medicare Troubles

Total Renal Care Holdings Inc. shares fell 16% after the operator of dialysis centers said Florida’s Medicare carrier has suspended payments to the company, charging that it overpaid for services. Total Renal said the charges were unfounded. Shares of the Torrance-based company fell $4.75 to close at $24.88 on the New York Stock Exchange. The disclosure heightened concerns about Total Renal’s outlook, which were raised by recent declines in shares of other health-care stocks such as health insurer WellPoint Health Networks Inc. and physician-practice manager PhyCor Inc., analysts said. Morgan Stanley Dean Witter analyst Todd Richter said Total Renal’s troubles in Florida don’t appear to be serious. “But in the environment we’re in, where health-care stocks across the board are getting hit pretty hard, people are not in the mood to take any uncertainty,” said Richter, who has a “neutral” rating on Total Renal. Total Renal also reported second-quarter net income of $9.6 million, excluding items, or 12 cents per diluted share, compared with $13.6 million, or 17 cents, a year ago.