HMA income up 19% during 2011

by The City Wire staff ([email protected]) 147 views 

The parent company of Sparks Health System in Fort Smith and Summit Medical Center in Van Buren posted 2011 net income of $178.71 million, a gain over the $150.069 million in 2010.

Naples, Fla.-based Health Management Associates pulled the income gain from $5.804 billion in total 2011 revenue, up 13.98% compared to 2010.

For the fourth quarter of 2011, the company reported net income of $30.847 million, up 9.46% compared the 2010 period. However, the per share earnings of 13 cents fell below the consensus estimate of 20 cents per share.

Also, the full year per share earnings of 70 cents fell below the consensus estimate of 80 cents per share.

“We are pleased to report another year of record revenues and strong earnings as we continue to successfully execute our operating and partnership strategies,” Gary Newsome, HMA president and CEO, said in a statement. “By continuing to focus our efforts on the fundamentals – investment in innovative services and strategic partnerships, recruitment of physicians and leadership talent, adherence to effective cost control measures and development of our very active partnership pipeline, we are looking forward to 2012 as we seek to enable America’s best local health care.”

Company officials listed several “Key metric” improvements during the fourth quarter. They include:
• Admissions increased 6.8% while adjusted admissions increased 11.6%;
• Same hospital net revenue increased 5.5% to $1.420 billion;
• Same hospital net revenue per adjusted admission increased 6.6%;
• Same hospital adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 25.3% to $271.6 million; and,
• Same hospital surgeries increased 0.8%.

As the company continues its acquisition and expansion efforts, long-term debt levels rise and cash holdings decline. Long-term debt as of Dec. 31 was $3.489 billion, up compared to $2.983 billion as of Dec. 31, 2010. Cash and cash equivalents totaled $81.853 million as of Dec. 31, down from $101.812 million at the end of 2010.

On the heels of a major acquisition of a Mercy hospital network in the Knoxville, Tenn., area, HMA recently entered into an agreement with Integris Health to buy five Oklahoma hospitals — 53-bed Integris Blackwell Regional Hospital, located in Blackwell; 64-bed Integris Clinton Regional Hospital, located in Clinton; 25-bed Integris Marshall County Medical Center, located in Madill; 52-bed Integris Mayes County Medical Center, located in Pryor; and 32-bed Integris Seminole Medical Center, located in Seminole.

The five hospitals have an aggregate of 226 licensed beds and generated approximately $95 million of revenue during the previous 12 months. The deal is expected to close April 1, 2012.

HMA purchased Sparks Health System in a $138-million deal that closed Nov. 30, 2009. The company operates 66 hospitals — including Summit Medical in Van Buren — in 15 states and employs more than 40,500. The publicly held hospital company is directly and indirectly affiliated with about 10,000 physicians.

HMA shares (NYSE: HMA) closed Monday (Feb. 13) at $6.90, up six cents. The earnings report was issued after markets closed. During the past 52 weeks the share price has ranged from a $11.74 high to a $4.81 low.