NAPLES — Health Management Associates, the Naples-based operator of 70 hospitals, says profit fell in the third quarter on higher expenses.
Health Management reported net income fell 5% to $41.3 million on net revenue of $1.4 billion in the third quarter compared with the same quarter one year ago. The profit decline was due in large part to higher expenses, including a charge for interest-rate swaps.
In addition, Hurricane Isaac affected Health Management's Florida and Mississippi hospital admissions. The company says admissions at hospitals opened longer than one year fell 6.4% in the third quarter.
Still, net revenue grew 18% in the third quarter compared with the same quarter one year ago. “We are pleased with these results and continue to see growth in outpatient services,” says Gary Newsome, Health Management's president and CEO, in a statement.
Health Management operates 70 hospitals with about 10,500 beds in non-urban areas around the U.S. The company's stock is publicly traded (symbol: HMA; recent price: $7.49).