Health Mgmt. rolls out of business ICU

Health Management Associates is in full recovery.

The Naples-based hospital operator that is the fourth-largest company on the Gulf Coast continues to show financial strength since Gary Newsome took over as president and chief executive officer in September 2008.

HMA, which owns and operates 55 hospitals in the Southeast, recently reported a 27% jump in earnings per share for the first quarter compared to the same quarter last year.

Now, the company is turning its eye toward growth by acquiring struggling hospitals at recession-level prices and turning them around.

“We expect to complete two or three transactions during 2010,” Newsome told analysts in a conference call on April 27. “Our pipeline is very full. We have a lot of quality opportunities out there.”

The expansion has been on hold for several years as HMA struggled with a massive restructuring and a rising tide of uninsured patients.

But Newsome, an industry veteran, has brought new efficiency to areas such as the emergency rooms and it's paid off. So far this year, HMA's stock (symbol: HMA) has risen 25% to more than $9 per share. (See Business Review March 26, 2009.)<