HMA Stock Plummets 6% in Wake of "60 Minutes" Story
Naples, Fla.-based Health Management Associates could not shake the publicity associated with Sunday's "60 Minutes" program, as shares of the for-profit hospital operator sank 5.7 percent yesterday.
Health Management closed the day at $7.50 per share, down from $7.95.
"60 Minutes" aired a segment Sunday that focused on alleged emergency department practices and Medicare fraud at hospitals owned by Health Management. Several former ED physicians said Health Management executives allegedly had inpatient admissions quotas for ED patients, and Health Management's former director of compliance alleged the chain was committing Medicare fraud as well.
Health Management fired back before the segment aired as well as yesterday, saying the news program "relied entirely on disgruntled former employees…and former contracted physicians" who are currently embroiled in lawsuits with the company. Health Management officials also said they have conducted internal investigations into the matter and are complying fully with an investigation from the Department of Justice based on the allegations of Medicare fraud.
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