HMA, Tenet still face financial struggles

Health Management Associates has had a rough second quarter, putting in it in the unenviable position of being perhaps the worst-positioned major hospital player, according to some analysts. Both HMA and Tenet had difficult second-quarter results, with Tenet posting its second quarterly loss in a row and HMS reporting a significant drop in second-quarter admissions.

The thing is, Tenet could at least boast improved bad-debt control and a smaller loss that had been cut by half from the previous quarter, as well as admissions gains of at least 2.5 percent in most of its regions. It also saw a growth in outpatient volume, including a 3.4 percent growth in outpatient surgery cases through its freestanding ambulatory surgery centers. (One major downside, however, was that commercially-insured admissions fell by 2.2 percent.)

HMA, meanwhile, missed both top-line and bottom-line estimates for Q2. Revenue was up 3.9 percent to $1.11 billion, falling below its $1.13 billion forecast, and net income grew 4.1 percent to $12.4 million. That doesn't sound terrible, but earnings per share still came in a penny short of Wall Street targets.

Generating more concern from company watchers, HMA's admissions fell 3.8 percent in the second quarter, mostly caused by a drop in insured patients. However, observers say some of these problems may have been generated by problems at HMA's Franklin Regional in North Carolina, which has been threatened with a loss in CMS certification over quality problems.

To learn more about the chains' performance:
- read this piece from

Related Articles:
HMA adopts tougher collections strategy
HMA sells seven-hospital stake to Novant
Analyst says Tenet poised for major turnaround
Tenet turning around: Admissions grow, losses fall

Suggested Articles

We take a look back at health insurers' financial performance, including soaring profits, in Q2.

Employment growth in the healthcare industry cooled off in July as the sector added fewer jobs than in June as COVID-19 continues to spread.

Employers are making adjustments to their health benefits in the wake of COVID-19, but workers may not take the time to consider these new options.