Health Care
Health Management Profit Grows 17%
The Associated Press
02/23/09 - 05:37 PM EST
Naples, Fla. -- Hospital operator Health Management Associates (HMA Quote) said Monday its profit climbed 17% in the fourth quarter, aided by a large gain from early debt retirement.
The company reported net income of $14.5 million, or 6 cents per share. That compares with $12.5 million, or 5 cents per share, a year earlier. Excluding one-time items, Health Management Associates said it earned 7 cents per share from continuing operations. Revenue grew 3%, to $1.11 billion from $1.08 billion.
The results matched Wall Street estimates. Thomson Reuters said analysts expected a profit of 7 cents per share and $1.11 billion in revenue.
One-time items during the quarter included a $26.4 million gain on the early extinguishment of debt, and a $6.2 million investment impairment.
Health Management Associates operates 56 hospitals, and during the quarter, admissions fell 0.2% to 76,562. Including both inpatient and outpatient admissions, adjusted admissions increased 1.1%, reaching 132,965. Revenue per adjusted admission grew 2.1%. Surgical procedures decreased 2.3% to 67,898.
For the year, Health Management Associates' profit rose 39%, to $167.2 million, or 68 cents per share, from $119.9 million, or 49 cents per share. Revenue grew 4%, to $4.45 billion from $4.29 billion.
In aftermarket trading, Health Management Associates shares jumped 24 cents, or 14.6%, to $1.89. In the regular session, the stock fell 1 cent to $1.65.