Net income at Naples, Fla.-based Health Management Associates dropped 24 percent, from $48.61 million in the second quarter of 2011 to $36.95 million in the most recent quarter, marking the second straight loss of its 2012 fiscal year.
Like the first quarter of 2012, higher expenses ate away at the profit margin, as they were 23 percent higher in the second quarter year-over-year. Health Management also reported more investment losses — an interest rate swap on what had been variable rate debt is costing Health Management millions per quarter, and the interest rate swap contract runs until 2014.
Net revenue, however, increased more than 20 percent, from $1.22 billion in the second quarter of 2011 to $1.47 billion this quarter. Adjusted EBITDA totaled $233.3 million, up 14.5 percent from $203.8 million last year.
In the six months ended June 30, 2012, Health Management recorded a profit of more than $74.6 million, down considerably from the $104.1 million profit in the first six months of FY 2011. Net revenue in the first six months grew more than 19 percent, from $2.48 billion to $2.96 billion.
Surgeries and emergency room visits skyrocketed in the second quarter, 21.4 percent and 20.1 percent respectively, indicating Health Management's 70 hospitals are still growing in terms of volume. In the first six months of FY 2012, surgeries are up 21.2 percent, and ER visits are up 16.7 percent.
Like the first quarter of 2012, higher expenses ate away at the profit margin, as they were 23 percent higher in the second quarter year-over-year. Health Management also reported more investment losses — an interest rate swap on what had been variable rate debt is costing Health Management millions per quarter, and the interest rate swap contract runs until 2014.
Net revenue, however, increased more than 20 percent, from $1.22 billion in the second quarter of 2011 to $1.47 billion this quarter. Adjusted EBITDA totaled $233.3 million, up 14.5 percent from $203.8 million last year.
In the six months ended June 30, 2012, Health Management recorded a profit of more than $74.6 million, down considerably from the $104.1 million profit in the first six months of FY 2011. Net revenue in the first six months grew more than 19 percent, from $2.48 billion to $2.96 billion.
Surgeries and emergency room visits skyrocketed in the second quarter, 21.4 percent and 20.1 percent respectively, indicating Health Management's 70 hospitals are still growing in terms of volume. In the first six months of FY 2012, surgeries are up 21.2 percent, and ER visits are up 16.7 percent.
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