HMS' Profit Down 10% in 4Q But Records Big 2011

Tags: CMS | HDI | HMS | HMS Holdings | RAC | recovery audit contractor

HMS Holdings, a major player in CMS' Recovery Audit Program for both Medicaid and Medicare, reported net income of $11.1 million in the fourth quarter of fiscal year 2011, a decrease of roughly 10 percent from the same period a year ago, according to an HMS news release.

However, in November, HMS agreed to purchase HealthDataInsights, the Medicare RAC for CMS Region D, for $400 million. After adjusting for the revenue and expenses of that transaction, HMS' profit is $15.6 million, a 26.2 percent increase from last year.

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Revenue in the fourth quarter rose 14.3 percent to a total of $99.7 million. For the entire 2011 fiscal year, HMS' net income jumped 19 percent from 2010 to $47.8 million. Revenue totaled $363.8 million, an increase of 20 percent from a year ago.

Related Articles on HMS:

HMS Holdings Acquires Medicare Region D RAC for $400M

CMS Approves HMS as Recovery Audit Contractor for New York

HMS to Act as Medicaid RAC for Utah

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