Health Management profit surges, admissions rise

Health Management Associates' 3rd-quarter profit surges while admissions increase

• On 8:47 am EDT, Tuesday October 27, 2009

NAPLES, Fla. (AP) -- Hospital operator Health Management Associates Inc. said late Monday its third-quarter profit more than doubled as hospital admissions increased.

Net income rose to $25.4 million, or 10 cents, per share, up from $10.8 million, or 4 cents per share, during the same period a year prior. Revenue rose 6 percent to $1.12 billion from $1.06 billion.

Analysts surveyed by Thomson Reuters expected profit of 9 cents per share on revenue of $1.13 billion.

In the second quarter, admissions adjusted for outpatient volume rose 7 percent. The company said admissions rose as a result of its operating strategy focusing on emergency room operations, physician recruitment and service development.

Uninsured discounts, write-offs for charity or indigent care and money set aside to cover bad debts was 12.8 percent of revenue in the quarter, up from 11.3 percent in the year-ago quarter.

During the third quarter, the company signed a non-binding letter of intent to buy the 492-bed Sparks Health System located in Fort Smith, Ark.

Shares of Health Management slipped 23 cents, or 3.1 percent, to $7.25 in premarket trading.