Naples, Fla.-based Health Management Associates reported Monday (Oct. 22) that its third quarter net income was $41.344 million, down slightly from the $43.728 million in the same period of 2011.
It was the third consecutive quarter that HMA posted a decline in net income. The per share earnings of 16 cents posted in the quarter missed the consensus analyst estimate of 19 cents per share.
HMA is the parent company of Sparks Health System in Fort Smith and Summit Medical Center in Van Buren.
Gary Newsome, HMA president and CEO, said he was pleased with the quarterly results and the hospital system did well “despite a very challenging and unpredictable economy.”
Revenue for the quarter totaled $1.44 billion, well ahead of the $1.219 billion in the third quarter of 2011.
For the first nine months of 2011, revenue at HMA is $4.397 billion, almost 19% higher than the $3.698 billion in the same period of 2011. Net income for the first nine months is $115.988 million, down from the $147.863 million during the 2011 period.
Other key metrics reported Monday by HMA include:
• Admissions increased 4%;
• Same hospital net revenue increased 4.5% to $1.274 billion;
• Same hospital adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 14.2% to $259.6 million;
• Same hospital surgeries and emergency room visits increased 0.8% and 4.2%, respectively;
• For the third quarter, the company’s provision for doubtful accounts was $224.1 million, or 13.5% of net revenue before the provision for doubtful accounts, compared to $178.9 million, or 12.8% of net revenue before the provision of doubtful accounts, for the same quarter a year ago.
Newsome said the hospital company’s financial performance of the company continues to open doors for future deals.
“This culture and track record of solid operating performance is also attracting a significant number of hospitals and hospital systems that are seeking a strategic partner capable of investing the necessary capital to enhance and expand services, and provide the operating expertise to leverage future opportunities,” Newsome said in the earnings report.
HMA shares (NYSE: HMA) closed Monday at $7.49, up 39 cents. The earnings report was issued after markets closed. During the past 52 weeks the share price has ranged from a $9.26 high to a $4.81 low.