HMA reports 21.6% gain in second-quarter income

by The City Wire staff ([email protected]) 34 views 

The parent company of Sparks Health System in Fort Smith and Summit Medical in Van Buren posted second-quarter earnings of $39.657 million, a 21.6% gain over the same quarter of 2009.

For the first half of 2010, Naples, Fla.-based Health Management Associates reported net income of $86.597 million, up 10.1% over the same period of 2010. Total revenue for the first half of 2010 was $2.532 billion, up 10.2% compared to the 2009 period.

Second quarter 2010 per share earnings of 16 cents bested the 15-cent consensus of analysts surveyed by Thomson Financial.

HMA purchased Sparks Health System in a $138-million deal that closed Nov. 30. The company operates 55 hospitals — including Summit Medical in Van Buren — in 15 states and employs about 33,700. The publicly held (NYSE: HMA) hospital company is directly and indirectly affiliated with 8,000 physicians. The company has said it plans to invest $20 million in Sparks during 2010.

“We are pleased with the continued successful execution of our operating strategy which has generated another quarter of outstanding financial results,” Gary D. Newsome, HMA’s president and CEO, said in a statement. “We have maintained our disciplined cost controls while continuing to see progress with our emergency room operational improvements, physician recruitment and market service development.”

The company also announced it had acquired a 60% controlling interest in three Shands HealthCare hospitals — Shands Lake Shore, Lake City, Fla.; Shands Live Oak, Live Oak, Fla.; and Shands Starke, Starke, Fla.

Key items from the second quarter report include:
• The company’s cash and cash equivalents as of June 30, 2010 fell to $112.637 million from $164.609 million as of June 30, 2009;
• Occupancy fell from 47.2% as of June 30, 2009, to 46.1% on June 30, 2010;
• The number of surgeries performed in HMA hospitals during the first half of 2010 was 160,912, up from the 146,115 during the same period of 2009;
• The company’s provision for doubtful accounts (bad debt) was $149.7 million during the second quarter, up compared to the $136.7 million during the same period of 2009; and,
• Total long-term debt fell from $3.004 billion as of June 30, 2009, to $2.993 billion as of June 30, 2010.

HMA shares (NYSE: HMA) closed Monday at $7, up 35 cents. The earnings report was released after the markets closed. During the past 52 weeks, the share price has ranged from a $9.81 high to a $5.22 low.