Naples, Fla.-based Health Management Associates posted first quarter net income of $23.102 million, down from $37.69 million in the 2012 quarter. Total revenue in the quarter was $1.482 billion, down from the $1.485 billion in the 2012 quarter.
HMA is the parent company of Sparks Health System in Fort Smith, and operates Summit Medical Center in Van Buren.
The per share earnings of 9 cents were off the consensus analyst estimate of 15 cents per share.
“Our first quarter results did not meet our expectations and reflect a difficult operating environment. I believe, however, that we have taken the necessary steps to adjust our cost structure going forward to achieve our previously updated 2013 annual guidance,” Gary Newsome, HMA president and CEO, said in the earnings statement. “As we transition into this new era of health care reform, we intend to continue our patient-centered approach to health care delivery while increasing efficiency and ultimately quality as we enable America’s best local health care.”
Key quarterly results noted by the company were:
• Same hospital net revenue was $1.47 billion;
• Same hospital net revenue per adjusted admission increased 5%; and,
• Same hospital surgeries decreased 5.6% and emergency room visits increased 1%.
The company also noted in the report that it received a subpoena from the Securities and Exchange Commission requesting documents “related to accounts receivable, billing write-downs, contractual adjustments, reserves for doubtful accounts, accounts receivable aging, and revenue from Medicare, Medicaid and from privately insured or uninsured patients.” The documents were requested “pursuant to an investigation.”
“Management is cooperating with the SEC’s investigation. Health Management is unable to determine the potential impact, if any, of this investigation,” HMA noted.
Shares of HMA (NYSE: HMA) closed Thursday at $11.23, up from the previous close of $10.94. During the past 52 weeks, the share price has ranged from a $13.63 high to a $5.92 low.