Health Management Associates Inc. (NYSE: HMA) saw a 40 percent surge in third quarter earnings, thanks to a 5.5 percent increase in surgeries at hospitals it has owned for at least a year, Naples (Fla.) News reports. Profits rose to $35.3 million, up from $25.4 million in the same quarter last year.
Among those hospitals that have been part of HMA at least a year, revenue rose by 13.3 percent, admissions grew by 4.9 percent and adjusted admissions grew 8.4 percent in the third quarter compared to the same quarter a year ago.
Revenue for HMA as a whole was $1.3 billion, compared to $1.1 billion last year for the same quarter.
The numbers exceeded analyst expectations. "Focusing on the fundamentals continues to pay dividences," Gary D. Newsome, HMA's president and CEO, said in a conference call with analysts on Thursday.
HMA hospital performance was strong, despite declines in uninsured admissions, H1N1 cases and births led to lower hospital admissions--down 3 percent) compared with Q3 2009.
Uninsured discounts for the third quarter were 215.6 million, up 24 percent from last year. Charity/indigent care write-offs for the quarter were up about 20 percent to $24.3 million for the quarter. The Uncompensated Patient Care Percentage, which is the sum of uninsured discounts, charity/indigent care write-offs and bad debt expense as a percent of the net revenue plus those factors, was up to 26.5 percent for Q3, from 25.7 percent a year ago.
HMA, which is based in Naples, owns and operates acute care hospitals in the southeast and southwest in non-urban areas.
To learn more:
- read the HMA press release
- here is the Tampa Bay Business Journal article
- read the Naples News story
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