Naples, Fla.-based Health Management Associates, the parent company of Sparks Health System in Fort Smith and Summit Medical Center in Van Buren, saw total revenue during the second quarter reach $1.686 billion, ahead of the $1.395 billion during the same period of 2011.
For the first half of 2012, total revenue was $3.373 billion, almost 20% above the $2.822 billion in the 2011 period, the company reported Monday (July 23).
Net income for the second quarter was $36.954 million, lower than the $48.611 million during the second quarter of 2012. The per share earnings of 14 cents also missed the consensus estimate of 21 cents per share.
“We continued to deliver strong revenue and earnings growth in the second quarter by adhering to our proven operating strategy and achieving efficiencies throughout our organization,” Gary Newsome, HMA president and CEO, said in the earnings report. “We believe our focus on improving quality, and creating an effective and efficient work environment with a patient centered approach is the right thing to do for our patients, associates and physicians. As a result, hospitals seeking a strategic partner with a similar culture, access to capital and operating expertise are contacting Health Management in increasing numbers, and we are excited about these partnership opportunities.”
Other earnings report notes included:
• Admissions increased 7.1% while adjusted admissions increased 13.1%;
• Same hospital net revenue increased 6.1% to $1.299 billion;
• Same hospital net revenue per adjusted admission increased 6.3%; and,
• Same hospital surgeries and emergency room visits increased 2.9% and 3.8%, respectively.
For the second quarter, the company’s provision for bad debt was $214.6 million, or 12.7% of net revenue before the provision for doubtful accounts, compared to $170.8 million, or 12.2% of net revenue before the provision of doubtful accounts, for the same quarter a year ago.
Also, uninsured self-pay patient discounts for the second quarter were $311.9 million, compared to $232.5 million for the same quarter a year ago. Charity/indigent care write-offs were $24.3 million for the second quarter, compared to $23.4 million for the same quarter a year ago.
“Health Management believes that its Uncompensated Patient Care Percentage provides key information regarding the aggregate level of patient care for which it does not receive payment,” the company noted in the report.
HMA shares (NYSE: HMA) closed Monday at $7.29, down 39 cents. The earnings report was issued after markets closed. During the past 52 weeks the share price has ranged from a $10.46 high to a $4.81 low.