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Surgery center companies hit hard on Wall Street

Ambulatory Surgery Reimbursement Update, September 26, 2006

Several surgery center companies saw their stock prices take a significant hit last week after Bank of America issued a downgrade to the entire ambulatory surgery center sector, according to stories published by the Associated Press (AP).

Analyst Gary Taylor downgraded United Surgical Partners International Inc. to "sell" from "buy," AmSurg Corporation to "sell" from "neutral," and Symbion, Inc., to "sell" from "buy," sending each to a several percentage-point decline Thursday. The stocks continued to suffer slightly on Friday.

Taylor cited companies' expectations for a reduction in out-of-network arrangements with payors and lower case volumes as reasons for the downgrades.

To view two stories from the AP on the downgrades and their effect, click here (Thursday story) and click here (Friday story).

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