Health Management Associates said its net income for the third quarter ended June 30 increased 48% to $15 million, or 32 cents per share, compared with $10 million, or 23 cents per share, during the year-ago period. Revenues rose 25% to $112 million. For the nine months, net income rose 53% to $38 million, or 80 cents per share, compared with $24 million, or 56 cents per share, in 1993. Revenues increased 28% to $329 million. The hospital chain attributed the results to increased inpatient and outpatient business, as well as continued efficiencies gained in the utilization of resources and patient care. Naples, Fla.-based Health Management Associates operates 22 hospitals in 11 states.
Voluntary health agencies spent $2.8 billion on public education, research, patient services, professional education and community services in 1992, a 7.2% increase from the previous year, according to the National Health Council. A new report by the Washington-based council provides fiscal 1992 revenue and expense information for its 38 member organizations, including the American Red Cross, American Cancer Society and National Easter Seal Society. In aggregate, the agencies were able to spend more because total revenues increased 7.9% to $3.5 billion. The increase reflects a 4.7% rise in public support to $1.8 billion, and an 11.4% jump, or $1.7 billion, in revenues from other sources such as government grants, sales, services and membership dues. Meanwhile, total expenses rose 6.5% to $3.3 billion. However, the agencies were able to trim administrative expenses by 0.4% to $2.2 million.
IBM last week canceled a $12.5 million contract with Value Behavioral Health, a subsidiary of Avon, Conn.-based Value Health, to supply mental health and substance-abuse services to IBM employees in the United States. IBM opted to put the contract out to bid. No explanation was given for the decision. Value Behavioral Health is the largest U.S. provider of contract mental health services. Value Health executives said the five-year deal would have expired in March 1995. While IBM was one of its largest clients, Value Health said it was nearing agreement for future contracts that would more than make up the difference in revenues lost from the IBM pact.
Two Maryland home-care staffing services have agreed to affiliate in a deal executives say will result in the creation of the largest home-care staffing agency in the state. Adventist Home Health Services, headquartered in Silver Spring, Md., and Baltimore rival Bay Area Health Care have agreed to align services as part of a combined effort to attract contracts from managed-care organizations. Terms of the affiliation weren't released. Adventist provides home-care staffing, home infusion and home psychiatric services in Maryland, the District of Columbia and Northern Virginia. Bay Area Health Care provides home-care staffing, home infusion and hospice care in Maryland. The two agencies have combined revenues of $25 million and are estimated to conduct 270,000 home visits in 1994.
Debby Adams, a former member of the board of Sarasota (Fla.) Memorial Hospital, was found dead at her home last week in an apparent suicide, police said. Ms. Adams, 39, had resigned in March from the public hospital board, citing harassing phone calls and threatening mail. Police investigated her complaints and found no evidence to support her charges (April 4, p. 92). During her stormy three-year tenure, Ms. Adams was one of the most outspoken members of the eight-member board. She questioned several board decisions and called the majority of its members "good old boys," who were rubber-stamping administrative proposals. A Sarasota Memorial spokeswoman said Ms. Adams had only attended one meeting since her resignation. Police said several suicide notes were left, but they declined to reveal the contents.
As part of ongoing restructuring, Barbara Donaho, president and chief executive officer of St. Anthony's Hospital in St. Petersburg, Fla., will retire Oct. 1. Ms. Donaho, 61, has been CEO of St. Anthony's the last three years. Last month, Allegany Health System, Tampa, Fla., announced it was merging St. Anthony's with St. Joseph's Hospital in Tampa. Allegany, a Roman Catholic system, sponsors both hospitals. John Biebel, St. Joseph's president and CEO, was named CEO of the new holding company that will oversee both hospitals.