Heavy Debt Could Sicken HMA

OKLAHOMA CITY -- Health Management Associates (HMA Quote) better hope it sells some hospitals soon.

The rural hospital chain needs $575 million -- more than four times what it has in the bank -- to satisfy a payment to its debt holders this summer. The company has said it hopes to make up the difference by raising up to $400 million through asset sales, but has announced no deals so far.

Because hospital sales require time, and HMA has little to spare, some analysts have started bracing for the worst. They fear that the company could be forced to renegotiate its debt under terms that jack up its interest costs and seriously dilute its stock. If all else fails, they foresee an outright breakup of the company. ...