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Health Management Associates, Inc. Previews Fourth Quarter And Year-End 2012 Results, And Announces 2013 Objectives

“Our preliminary 2012 results reflect an ongoing difficult economic backdrop. However, by continuing to focus on delivering high quality care, while maintaining strong fiscal discipline, we achieved solid same hospital results for the quarter and the year,” said Gary Newsome, President and Chief Executive Officer of Health Management. "The health care industry is in the midst of significant change, and we're taking important steps that we believe will best position Health Management for continued success as health care reform continues to be implemented. We believe that the change the industry is experiencing is creating growth opportunities from hospital partnerships and acquisitions - an attractive area for capital deployment - and we expect this environment will continue for the foreseeable future.”

The table below sets forth selected information concerning Health Management’s objectives for the year ending December 31, 2013. These objectives are based on Health Management's historical operating performance, current trends and other assumptions that management believes are reasonable at this time. These objectives exclude any potential hospital partnerships and acquisitions that may be completed in 2013.

      2013 Objective Range
Adjusted Admissions growth (same hospital)

(1.0%)  to  1.0%

Net revenue (in millions, before bad debt expense)

$7,000  to  $7,200

Provision for doubtful accounts as a percentage of net revenue

13.5%  to  14.5%

Adjusted EBITDA 1 (in millions) 2

$978  to  $1,038

Interest expense, net (in millions)

$275  to  $290

Income from continuing operations attributable to Health Management Associates, Inc. per share – diluted 2

$0.86  to  $1.01

Net income attributable to noncontrolling interests (in millions)

$27  to  $31

Capital expenditures as a percentage of net revenue, after bad debt expense

4.5%  to  5.5%

HCIT meaningful use reimbursement in adjusted EBITDA (in millions)

$75  to  $85

 
Items not included above:

Interest rate swap interest expense (in millions)

$75  to  $85

   

1.

Adjusted EBITDA is defined as consolidated net income before discontinued operations, net gains (losses) on sales of assets, net interest and other income, interest expense, income taxes, and depreciation and amortization. Adjusted EBITDA is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Health Management believes that providing non-GAAP information such as Adjusted EBITDA is important for investors and other readers of Health Management's consolidated financial statements, as it is commonly used as an analytical indicator within the health care industry and Health Management's debt facilities contain covenants that use Adjusted EBITDA in their calculations. Because Adjusted EBITDA is a non-GAAP measure and is thus susceptible to varying calculations, Adjusted EBITDA, as presented, may not be directly comparable to other similarly titled measures used by other companies.
2. Refer to attached tables for additional detail on Adjusted EBITDA and EPS.
 

During 2012, Health Management hospitals expect to recognize $90 to $95 million of Medicare/Medicaid HCIT incentive payments. Based on current 2013 attestation schedules and cost report year ends for its hospitals, Health Management expects to recognize approximately $75 to $85 million of Medicare/Medicaid HCIT incentive payments during the year ending December 31, 2013.

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