Press Releases

NEW YORK, NY -- (MARKET WIRE) -- 02/13/12 -- The total market for handheld devices in healthcare reached $11 billion globally in 2011, reflecting over 10% growth since 2007, according to Kalorama Information. There are a number of factors fueling growth, but the healthcare market research publisher sees the fastest growth in administrative devices -- the kind of devices used by healthcare providers to enter patient data -- as a sign that 'meaningful use' requirements for EMR systems are having an effect on this market.

The EMR incentive program, created by Health and Human Services (HHS) in 2009 to boost paperless medicine, was specifically designed not to reward mere purchases of software. To qualify for federal government incentives, hospital and physician groups are required to show that they have entered patient visits and transactions electronically.

"To qualify you have to show that your healthcare providers are actually using the EMR -- entering patient data and ordering prescriptions electronically," Kalorama Information publisher Bruce Carlson said. "We think that realistically it means handheld devices. Meaningful use of EMR means meaningful use of handhelds, as the patient-centered nature of healthcare work doesn't permit a lot of desk time."

Kalorama Information divides the market for handheld devices between patient monitoring and administrative use. Patient monitoring devices such as ultrasound and ECG systems have historically accounted for the largest share of sales in the handheld market, largely due to the range of product availability. However, this is changing with the growing applications and capabilities of tablet PCs, and the need to enter patient data electronically. Administrative device usage has exploded over the last five years with the growing use of PDAs, smartphones, and tablet PCs taking hold in the healthcare industry. Tablet PCs are being used for a variety of uses in the health field, including access to patient records at the point of care, improved viewing capabilities for medical images, and easy offsite patient monitoring.

EMR is not the only driver of handheld devices in healthcare. Several factors are driving the growth of this market, including cost restraints, medical error reduction measures, government incentives, expanding capabilities of devices, off-site medical care and more, according to Kalorama Information.

"The use of handheld devices in healthcare was growing before the first EMR payments were wired," said Carlson. "Better patient outcomes and the ability of providers to always have a patient record in front of them; these factors have driven purchases even more."

More information can be obtained in Kalorama Information's report on the subject, Handhelds in Healthcare: Markets for Smartphones, Tablet PCs, PDAs, Monitors & Scanners. The report includes key company profiles and market share, revenue forecasts, and breakouts by device category.

About Kalorama Information Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog.

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Please direct all media inquiries to:
Bruce Carlson
press@kaloramainformation.com
www.KaloramaInformation.com

Source: Kalorama Information

Net Revenue Increases 17.6% to $1.58 Billion in the 4th Quarter

NAPLES, Fla.--(BUSINESS WIRE)-- Health Management Associates, Inc. (NYSE: HMA) today announced its consolidated financial results for the fourth quarter and year ended December 31, 2011.

Key metrics from continuing operations for the fourth quarter (all percentage changes compare the fourth quarter of 2011 to the fourth quarter of 2010) include:

• Excluding certain write-offs of deferred debt issuance costs, Tennova restructuring charges, and interest rate swap accounting, as shown in the tables accompanying this press release, diluted earnings per share from continuing operations increased 62.5% to $0.26 as compared to $0.16 per diluted share for the same quarter a year ago;
• Revenue increased 17.6% to $1.584 billion;
• Adjusted EBITDA increased 27.3% to $236.2 million. Adjusted EBITDA includes approximately $38.2 million of Medicare and Medicaid HCIT incentive payments, and excludes $24.6 million of write-offs of deferred debt issuance costs and $12.9 million of Tennova restructuring charges;
• Admissions increased 6.8% while adjusted admissions increased 11.6%;
• Same hospital net revenue increased 5.5% to $1,420.4 million;
• Same hospital net revenue per adjusted admission increased 6.6%;
• Same hospital Adjusted EBITDA increased 25.3% to $271.6 million, resulting in a 300 basis point improvement in margin to 19.1%. Excluding approximately $38.2 million of Medicare and Medicaid HCIT incentive payments, same hospital Adjusted EBITDA increased 7.7% to $233.3 million, resulting in a 30 basis point improvement in margin to 16.4%; and
• Same hospital surgeries increased 0.8%.

The tables accompanying this press release include reconciliations of consolidated net income to all presentations of Adjusted EBITDA (which is not a GAAP measure) contained in this press release. Those tables also reconcile earnings per share on a GAAP basis to those amounts presented in this press release and contain disclaimers and other important information regarding how Health Management defines and uses Adjusted EBITDA.

For continuing operations at hospitals operated by Health Management for one year or more, referred to as same hospital operations, net revenue in the fourth quarter increased $73.9 million or 5.5%, to $1,420.4 million compared to the same quarter in the prior year. Adjusted EBITDA from same hospital operations grew 25.3% to $271.6 million, representing 19.1% of net revenue, as compared to $216.7 million and 16.1%, respectively, for the same quarter a year ago. Same hospital Adjusted EBITDA includes $38.2 million of Medicare and Medicaid HCIT incentive payments and excludes $24.6 million of write-offs of deferred debt issuance costs and $12.9 million of Tennova restructuring charges. Declines in uninsured admissions contributed to a 3.7% and 1.1% decline in fourth quarter same hospital admissions and adjusted admissions, respectively.

“We are pleased to report another year of record revenues and strong earnings as we continue to successfully execute our operating and partnership strategies,” said Gary D. Newsome, Health Management’s President and Chief Executive Officer. “By continuing to focus our efforts on the fundamentals – investment in innovative services and strategic partnerships, recruitment of physicians and leadership talent, adherence to effective cost control measures and development of our very active partnership pipeline, we are looking forward to 2012 as we seek to enable America’s best local health care.”

Health Management’s provision for doubtful accounts, or bad debt expense, was $195.1 million, or 12.3% of net revenue, for the fourth quarter compared to $163.9 million, or 12.2% of net revenue, for the same quarter a year ago.

Uninsured self-pay patient discounts for the fourth quarter were $254.5 million, compared to $209.3 million for the same quarter a year ago. Charity/indigent care write-offs were $23.1 million for the fourth quarter, compared to $24.2 million for the same quarter a year ago.

The sum of uninsured discounts, charity/indigent write-offs and bad debt expense, as a percent of the sum of net revenue, uninsured discounts and charity/indigent write-offs (which Health Management refers to as its Uncompensated Patient Care Percentage) was 25.4% for the fourth quarter, compared to 25.2% for the fourth quarter a year ago, and 26.1% for the quarter ended September 30, 2011. Health Management believes that its Uncompensated Patient Care Percentage provides key information regarding the aggregate level of patient care for which it does not receive payment.

Cash flow from continuing operating activities for the fourth quarter was $114.8 million, after cash interest and cash tax payments aggregating $59.9 million. Health Management’s total leverage ratio and interest coverage ratio were both approximately 4.0 at December 31, 2011.

For the year ended December 31, 2011, Health Management reported net revenue of $5,804.5 million and Adjusted EBITDA of $848.2 million. For 2011, income from continuing operations was $206.3 million and net income attributable to Health Management’s common stockholders was $178.7 million, or $0.71 per diluted share from continuing operations, a 9.2% increase compared to $0.65 per diluted share from continuing operations for the year ended December 31, 2010. As shown in the accompanying table, excluding write-offs of deferred debt issuance costs, interest rate swap accounting, Tennova restructuring charges and acquisition and investigation charges, diluted earnings per share from continuing operations increased 32.3% to $0.86 compared to the same period a year ago.

Health Management hospitals recognized approximately $1.8 million of Medicare and Medicaid HCIT incentive payments in the third quarter ended September 30, 2011 and approximately $38.2 million in the fourth quarter ended December 31, 2011. Based on current 2012 attestation schedules and cost report year ends for the remainder of its hospitals, Health Management expects to recognize approximately $90 to $120 million of Medicare and Medicaid HCIT incentive payments during the year ending December 31, 2012, the bulk of which is expected to be recorded in the third and fourth quarters of 2012.

Health Management is also affirming its diluted EPS from continuing operations objective range for fiscal year 2012 to be between $0.80 and $0.90. This diluted EPS range does not include approximately $80 million, or $0.20 per diluted share of impact expected from interest rate swap accounting or approximately $90 to $120 million of anticipated Medicare and Medicaid HCIT incentive payments.

As previously announced on February 6, 2012, a subsidiary of Health Management executed a definitive agreement with INTEGRIS Health to enter into a joint venture arrangement for five Oklahoma hospitals. The Oklahoma hospitals to be joint ventured include: 53-bed Integris Blackwell Regional Hospital, located in Blackwell; 64-bed Integris Clinton Regional Hospital, located in Clinton; 25-bed Integris Marshall County Medical Center, located in Madill; 52-bed Integris Mayes County Medical Center, located in Pryor; and 32-bed Integris Seminole Medical Center, located in Seminole. Combined, these five hospitals have an aggregate of 226 licensed beds and generated approximately $95 million of revenue over the last twelve months. Under the joint venture agreement, Health Management is anticipated to own an 80% controlling interest in each of these five hospitals and will manage their operations. The transaction is subject to normal and customary regulatory approvals and is expected to be completed by April 1, 2012.

Health Management’s executive team will hold a conference call and webcast to discuss the contents of this press release and Health Management’s consolidated financial results for the three months and year ended December 31, 2011 on Tuesday, February 14, 2012 at 11:00 a.m. EST. Investors are invited to access the webcast via Health Management’s website at www.HMA.com or via www.streetevents.com. Alternatively, investors may join the conference call by dialing 877-476-3476.

Health Management will archive a copy of the audio webcast of the conference call, along with any related information that Health Management may be required to provide pursuant to Securities and Exchange Commission rules, on its website under the heading “Investor Relations” for a period of 60 days following the conference call.

Health Management enables America's best local health care by providing the people, processes, capital and expertise necessary for its hospital and physician partners to fulfill their local missions of delivering superior health care services. Health Management, through its subsidiaries and upon completion of the previously announced INTEGRIS Health joint venture transaction, will operate 71 hospitals, with approximately 10,600 licensed beds, in non-urban communities located throughout the United States.

All references to "Health Management," "HMA" or the "Company" used in this release refer to Health Management Associates, Inc. and its affiliates.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "plans," "could" and other similar words. All statements addressing operating performance, events or developments that Health Management Associates, Inc. expects or anticipates will occur in the future, including but not limited to incurrence of indebtedness, projections of revenue, income or loss, capital expenditures, earnings per share, the timing and receipt of Medicare and Medicaid HCIT incentive payments the financial impact expected from interest rate swap accounting, debt structure, bad debt expense, capital structure, repayment of indebtedness, other financial items and operating statistics, statements regarding the plans and objectives of management for future operations, innovations, or market service development, statements regarding acquisitions, joint ventures, divestitures and other proposed or contemplated transactions (including but not limited to statements regarding the timing of anticipated acquisitions, the potential for future acquisitions and perceived benefits of acquisitions), statements of future economic performance, statements regarding the effects and/or interpretations of recently enacted or future health care laws and regulations, statements of the assumptions underlying or relating to any of the foregoing statements, and other statements which are other than statements of historical fact, are considered to be "forward-looking statements."

Because they are forward-looking, such statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Health Management Associates, Inc.'s most recent Annual Report on Form 10-K, and its most recent Quarterly Report on Form 10-Q, under the headings entitled "Risk Factors." Should one or more of these risks or uncertainties materialize, or should any of Health Management Associates, Inc.'s underlying assumptions prove incorrect, actual results could vary materially from those currently anticipated. In addition, undue reliance should not be placed on Health Management Associates, Inc.'s forward-looking statements. Except as required by law, Health Management Associates, Inc. disclaims any obligation to update its risk factors or to publicly announce updates to the forward-looking statements contained in this press release to reflect new information, future events or other developments.

Health Management Associates, Inc.John C. Merriwether, 239-598-3131Vice President of Financial Relations

Source: Health Management Associates, Inc.

NEW YORK--(BUSINESS WIRE)-- Martin Somelofske has joined Hay Group as a Senior Principal and Northeast Practice Leader for Executive Compensation in Hay Group’s Metro New York office.

Martin joins Hay Group from PricewaterhouseCoopers, where he was a Managing Director. He brings over 20 years of experience providing executive compensation advisory services to a broad range of public and privately held organizations in diverse industries. Martin advises Boards and executives on all matters related to executive compensation and benefits.

Martin’s expertise centers on performance management, executive reward program design, and the alignment of reward programs with organizational and stakeholder value. In addition, Martin often assists clients with Board governance issues.

“We are thrilled to have Marty join Hay Group,” said Irv Becker, Hay Group’s US practice leader of executive compensation. “His strong technical background and client relationship experience will be great assets to our clients.”

Martin is a frequent speaker at national and regional conferences as well as presenting often to Boards and compensation committees. In addition to authoring several published articles, Martin has also made numerous presentations at universities and human resources conferences around the world including those in Dublin, Hong Kong, Seoul, Singapore, Beijing, Shanghai, and Guangzhou.

Martin holds an AB in economics (cum laude) from Georgetown University, a JD from Albany Law School of Union University and an MBA with a concentration in finance from the University of Michigan. He is a member of World at Work, and NASPP.

For more information, please contact Mitch Kent at 215 861 2315; mitch.kent@haygroup.com

Follow us on Twitter: @hay_group

About Hay Group: Hay Group is a global management consulting firm that works with leaders to transform strategy into reality. We develop talent, organize people to be more effective and motivate them to perform at their best. Our focus is on making change happen and helping people and organizations realize their potential. Visit www.haygroup.com

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Hay GroupMitch Kent, 215-861-2315mitch.kent@haygroup.com

Source: Hay Group