Health Management Associates Projects Tepid 4Q
Health Management Associates had an up-and-down fiscal year 2012, and the for-profit hospital operator expects net revenue on the year will total roughly $5.88 billion, an increase of only 1.4 percent.
Health Management has been involved with a couple transactions in the past calendar year, including a joint venture with Oklahoma City-based Integris Health and an acquisition of Bayfront Health System in St. Petersburg, Fla.
The company was also surrounded by controversy. In December, a "60 Minutes" report focused on alleged emergency department practices at hospitals owned by Health Management, and a former company executive told "60 Minutes" he believed the for-profit chain intentionally committed Medicare fraud for hospital stays that "did not meet government standards for admission or reimbursement."
For the fourth quarter of fiscal year 2012, which ended Dec. 31, Health Management executives said it expected net revenue to total $1.48 billion, or a drop of $100 million from a year ago.
Health Management President and CEO Gary Newsome said in a news release that "our preliminary 2012 results reflect an ongoing difficult economic backdrop," but he believes the company is in a good position to create more acquisition and invest more capital. For 2013, Health Management will shoot for net revenue of $7 billion to $7.2 billion, which is more than a 22 percent increase from its projected net revenue this past year.
Health Management plans to release its final, audited financials of FY 2012 within the next several weeks.
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