PDX: Recession worries may be causing couples to delay having babies; fewer twins?

About a year ago America’s 20 and 30 somethings apparently made a collective decision that having babies was not a good idea what with a recent plunge in stock prices, falling housing prices, talk of a banking crisis and growing worries about the economy.

This means the country may be headed into another birth dearth period unless would be moms and dads suddenly turn more optimistic. Most political polls and consumer sentiment surveys are pretty dour these days. I mean, things have to be pretty tight when gas is over $3.65 and Starbucks (SBUX) is having a tough time selling $5 lattes.

That, at least, is what might be gathered from comments by the chief executive officer of Pediatrix Medical Group (PDX), which said it has seen a slower than average growth rate in births at hospitals where it manages neo native intensive care units. Pediatrix says it manages neo natal intensive care units (NICUs) that serve about 10% of the nation’s NICU patients.

“During the 2008 first quarter we did see a decline in the rate of growth in the number of births at hospitals where we practice,” CEO Roger Medel said in a conference call with securities analysts, Reuters reported. For a company profile, access to news releases and financial information about PDX, the Reuters summary page is here. A transcript of Pediatrix’s conference call is here.

The question for investors: Are other companies serving new parents such as hospital chains, formula and diaper makers, Wal-Mart (WMT), Walgreens (WAG) and Johnson & Johnson (JNJ) seeing similar trends?

The first thought that comes to my mind as the former owner of Twins™ Magazine (twinsmagazine.com) is that fewer twins and other multiples are being born, because multiples are more likely to be born prematurely and admitted to NICUs than singletons. The Center for Disease control reports the distribution of births by gestational age here.

Last month the CDC reported that between 2000 and 2004 the pregnancy rate for women under 25 dropped compared with the rate for 1990. “Nearly 38 percent of pregnancies in 2004 were to women under age 25, down from nearly 43 percent in 1990. The proportion of pregnancies among teens under age 20 dropped from 15 percent in 1990 to 12 percent in 2004,” the report said.

Full disclosure: I have no interest in PDX or the other stocks mentioned here.

For educational purposes only. Investigate before you speculate.

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