Rising expenses continued to hammer away at Health Management Associates' earnings, as the Naples, Fla.-based for-profit hospital operator reported its third straight quarter of lower profit in 2012.
Net income in the quarter ended Sept. 30, 2012 dropped to $41.34 million — a 5.5 percent decrease from $43.73 million in the third quarter of 2011.
However, net revenue continued to increase. Health Management's third quarter net revenue soared 18.1 percent from the year-earlier quarter to a total of $1.44 billion. Total expenses wiped those revenue gains as they ballooned 19.4 percent year-over-year in the third quarter.
Same-hospital admissions fell 6.4 percent in the third quarter, and Health Management attributed that major drop to the effects of Hurricane Isaac on its hospitals in Mississippi and Florida, coupled with declines in uninsured admissions and increases in observation stays. Adjusted admissions fell 2.2 percent in the quarter.
Health Management President and CEO Gary Newsome said in a news release the company is still encouraged by the third quarter results despite the "challenging and unpredictable economy."
For the nine months ended Sept. 30, Health Management's profit has fallen 21.6 percent, from $147.9 million in 2011 to $116 million this year. Net revenue in the first nine months of 2012 totaled $4.4 billion compared with $3.7 billion in 2011.
Net income in the quarter ended Sept. 30, 2012 dropped to $41.34 million — a 5.5 percent decrease from $43.73 million in the third quarter of 2011.However, net revenue continued to increase. Health Management's third quarter net revenue soared 18.1 percent from the year-earlier quarter to a total of $1.44 billion. Total expenses wiped those revenue gains as they ballooned 19.4 percent year-over-year in the third quarter.
Same-hospital admissions fell 6.4 percent in the third quarter, and Health Management attributed that major drop to the effects of Hurricane Isaac on its hospitals in Mississippi and Florida, coupled with declines in uninsured admissions and increases in observation stays. Adjusted admissions fell 2.2 percent in the quarter.
Health Management President and CEO Gary Newsome said in a news release the company is still encouraged by the third quarter results despite the "challenging and unpredictable economy."
For the nine months ended Sept. 30, Health Management's profit has fallen 21.6 percent, from $147.9 million in 2011 to $116 million this year. Net revenue in the first nine months of 2012 totaled $4.4 billion compared with $3.7 billion in 2011.
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