Among financial analysts, Lincare Holdings Inc. is known as having one of the most experienced executive teams in the home oxygen industry. It's also known as one of the most tight-lipped. Shunning all publicity, Lincare simply churned out ever-increasing earnings each quarter at a predictable clip, as it acquired competitors and opened new locations. In short order, it became a nationwide behemoth with $1.6-billion in sales.

Now, however, Lincare's predictably profitable growth pattern is coming under fire. Medicare, its biggest payer, is cutting how much it pays for everything from oxygen to respiratory drugs. Medicare has put the oxygen business out to bid in 10 major markets and will soon roll it out elsewhere. Whether Lincare wins the bid — and at what reimbursement rate — could have a major effect on its earnings.

In a recent quarterly press release, Lincare jolted investors when it said revenues would take a $100-million hit this year because of Medicare cuts. Concern over Medicare's moves had driven down Lincare's stock from more than $40 a share this year to about $25. There was speculation on Internet message boards that lower reimbursements would lead to trimming of Lincare's 9,000-plus work force.

As usual, executives at the top of the company had no comment.