Health Management Associates, Naples, Fla., saw income from operations improve by 14% in the fourth quarter despite a 3.1% decline in same-facility admissions, according to a news release.
Sale of Miss. hospital hits HMA's net income
HMA's net income for the fourth quarter was $28.2 million, down 17.4% from 2009's fourth quarter. The company recorded a loss on discontinued operations of $13.1 million related to the sale of Riley Hospital in Meridian, Miss., that offset the improved performance in continuing operations. Revenue increased 14.1%, to $1.35 billion, thanks mostly to the acquisition of six hospitals during 2010, according to HMA.
Fewer uninsured admissions and H1N1 flu cases made up most of the decline in inpatient admissions. The admissions decline was offset by higher outpatient volume, as same-facility adjusted admissions increased 0.1%. Same-facility surgeries increased 5.2%.
Even with fewer uninsured admissions, HMA saw its total uncompensated care increase. The sum of uninsured discounts, charity care and bad debt expense was 25.1% of the sum of net revenue, discounts and charity care in the fourth quarter, versus 24% for 2009's fourth quarter.
HMA is far along in ensuring that its information systems meet the federal government's meaningful-use criteria, but Kelly Curry, executive vice president and chief financial officer, said the company is not banking on the subsidy payments yet. "There are others that feel differently, but I have some doubts that they will pay it out," Curry said during a conference call.
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