NAPLES — The Securities and Exchange Commission has launched an investigation into the billing practices of hospital operator Health Management Associates, the company says.
Naples-based HMA operates 71 hospitals with approximately 11,100 licensed beds in non-urban communities located throughout the country.
In an announcement about its quarterly earnings, HMA says the SEC issued a subpoena related to an investigation of the company. It requested documents related to accounts receivable, billing write-downs, contractual adjustments, reserves for doubtful accounts, as well as revenue from Medicare, Medicaid and from privately insured or uninsured patients.
“Management is cooperating with the SEC's investigation,” an HMA statement says. “Health Management is unable to determine the potential impact, if any, of this investigation.”
Meanwhile, HMA reported it earned $23.1 million on net revenue of $1.72 billion for the quarter ending March 31. That compares with earnings of $37.7 million on net revenues of $1.69 billion in the same quarter one year ago.
“Our first quarter results did not meet our expectations and reflect a difficult operating environment,” says Gary Newsome, HMA's president and CEO, in a statement. “I believe, however, that we have taken the necessary steps to adjust our cost structure going forward to achieve our previously updated 2013 annual guidance.”