Warning rocks Healthways stock
Franklin, TN-based Healthways Inc.'s stock fell nearly 22% after the company said it expects to earn much less in its fiscal first quarter than Wall Street analysts had forecast. The outlook comes as some outsiders warn that Healthways' services may be considered too high-priced in an era of rising medical costs in which corporate executives scrutinize expenses more closely and cut discretionary spending. Healthways provides medical support and health advice to members of health insurance plans who are at risk from chronic diseases such as diabetes.
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