Health Management Associates, Naples, Fla., said it has agreed to acquire two-hospital Wuesthoff Health System, Rockledge, Fla., for about $145 million. The company also reported stronger second-quarter earnings thanks to increased outpatient volume and surgeries and lower uncompensated care costs.
HMA seeks to buy Wuesthoff Health
HMA said that 291-bed Wuesthoff Medical Center-Rockledge and 115-bed Wuesthoff Medical Center-Melbourne (Fla.) would complement its 119-bed Sebastian River Medical Center, Sebastian, Fla. HMA expects to complete the deal, funded mostly with cash on hand, by Oct. 1. It would be the company's second deal in Florida this year. On July 1, HMA acquired a 60% interest in three rural hospitals from Shands HealthCare, Gainesville, Fla., for about $22 million.
HMA recorded net income of $39.7 million in the second quarter, up 23.1% from the year-ago quarter. Revenue increased 10.3%, to $1.25 billion. On a same-facility basis, admissions declined 0.6%, but adjusted admissions increased 3.7% thanks to strong growth in outpatient surgeries, HMA reported. The total costs of uncompensated care—bad debt, charity care and discounts to uninsured patients—was 24.4% of the sum of net revenue, charity care and discounts for the quarter, down from 24.8% in 2009's second quarter.
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