Health Management Associates, Inc. (NYSE: HMA)announced today its expected, unaudited results of operations for the fourth quarter and year ended December 31, 2012.
From continuing operations for the fourth quarter, Health Management expects to report net revenue of approximately $1.48 billion, Adjusted EBITDA of between $253 and $260 million, and diluted earnings per share (“EPS”) from continuing operations attributable to Health Management Associates, Inc. of between $0.19 and $0.21. Impacting the fourth quarter was approximately $0.04 per diluted share of incremental legal and investigation expense and approximately $0.02 to $0.03 per diluted share related to Mississippi Medicaid payment reductions, which were offset by Medicare and Medicaid Healthcare Information Technology (“HCIT”) incentive payments. Excluding the impact of interest rate swap accounting, including mark-to-market adjustments andMedicare and Medicaid HCIT incentive payments, net of Medicaid rate reductions, diluted EPS from continuing operations is expected to be between $0.12 and $0.13, as shown in the table accompanying this press release. For continuing same hospital operations, compared to the prior year’s fourth quarter, Health Management expects surgeries to increase 0.9%, adjusted admissions to be nearly flat at (0.1)%, and admissions to decline 4.7%. Adjusted EBITDA is not a GAAP measure and footnote 1 to the 2013 Objective Range table below contains disclaimers and other important information regarding how Health Management defines and uses Adjusted EBITDA.
From continuing operations for the year ended December 31, 2012 Health Management expects to report net revenue of $5.87 to $5.88 billion and diluted EPS attributable to Health Management Associates, Inc. of between$0.66 and $0.69. Excluding the impact of interest rate swap accounting, including mark-to-market adjustments andMedicare and Medicaid HCIT incentive payments, net of Medicaid rate reductions, diluted EPS from continuing operations is expected to be between $0.75 and $0.76, as shown in the table accompanying this press release.
“Our preliminary 2012 results reflect an ongoing difficult economic backdrop. However, by continuing to focus on delivering high quality care, while maintaining strong fiscal discipline, we achieved solid same hospital results for the quarter and the year,” said Gary Newsome, President and Chief Executive Officer of Health Management. “The health care industry is in the midst of significant change, and we’re taking important steps that we believe will best position Health Management for continued success as health care reform continues to be implemented. We believe that the change the industry is experiencing is creating growth opportunities from hospital partnerships and acquisitions – an attractive area for capital deployment – and we expect this environment will continue for the foreseeable future.”
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The table below sets forth selected information concerning Health Management’s objectives for the year endingDecember 31, 2013. These objectives are based on Health Management’s historical operating performance, current trends and other assumptions that management believes are reasonable at this time. These objectives exclude any potential hospital partnerships and acquisitions that may be completed in 2013.