Hospital operator Health Management Associates Inc. on Tuesday forecast fourth-quarter and full-year profit below Wall Street expectations, as the industry continues to face bad debt and weak growth amid the economic recession.
For the fourth quarter ended Dec. 31, HMA expects to post adjusted profit from continuing operations of 6 cents per share on revenue of about $1.1 billion. That compares with analysts' average forecast for earnings of 9 cents per share on revenue of $1.11 billion, according to a Thomson Reuters poll.
Health Management also said doubtful accounts -- an estimated amount of patients' unpaid bills -- for the fourth quarter will range from 11.5 percent to 12 percent of revenue. Admissions at facilities open at least a year will be flat to down 1 percent.
For the full year, HMA expects to report adjusted profit from continuing operations of 38 cents per share on revenue of about $4.5 billion, while analysts expect higher profit of 41 cents per share on revenue of $4.45 billion.
Provisions for bad debt are expected to range from 11.4 percent to 11.6 percent of revenue, or about $513 million to $522 million.
Hospital operators across the industry are contending with economic difficulties as more cash-strapped consumers delay medical care or can't pay their bills. Many companies in the sector are in debt and carrying larger amounts of bad debt from treating patients who have no insurance or are underinsured.
By continuing to focus on the three key areas of emergency room operations, physician recruitment and market service development, we believe we can improve patient volumes during 2009," said President and Chief Executive Gary Newsome, in a statement. "We have already begun to aggressively manage the cost structure of the company, and when those cost benefits are combined with our ongoing volume initiatives, we believe our financial results will improve."
Looking ahead, the company forecasts profit from continuing operations between 37 cents and 45 cents per share in 2009, on revenue of $4.55 billion to $4.65 billion. Admissions are expected to remain flat or grow up to 1 percent.
Wall Street, on average, is predicting full-year profit of 42 cents per share on revenue of $4.6 billion.
via yahoo
For the fourth quarter ended Dec. 31, HMA expects to post adjusted profit from continuing operations of 6 cents per share on revenue of about $1.1 billion. That compares with analysts' average forecast for earnings of 9 cents per share on revenue of $1.11 billion, according to a Thomson Reuters poll.
Health Management also said doubtful accounts -- an estimated amount of patients' unpaid bills -- for the fourth quarter will range from 11.5 percent to 12 percent of revenue. Admissions at facilities open at least a year will be flat to down 1 percent.
For the full year, HMA expects to report adjusted profit from continuing operations of 38 cents per share on revenue of about $4.5 billion, while analysts expect higher profit of 41 cents per share on revenue of $4.45 billion.
Provisions for bad debt are expected to range from 11.4 percent to 11.6 percent of revenue, or about $513 million to $522 million.
Hospital operators across the industry are contending with economic difficulties as more cash-strapped consumers delay medical care or can't pay their bills. Many companies in the sector are in debt and carrying larger amounts of bad debt from treating patients who have no insurance or are underinsured.
By continuing to focus on the three key areas of emergency room operations, physician recruitment and market service development, we believe we can improve patient volumes during 2009," said President and Chief Executive Gary Newsome, in a statement. "We have already begun to aggressively manage the cost structure of the company, and when those cost benefits are combined with our ongoing volume initiatives, we believe our financial results will improve."
Looking ahead, the company forecasts profit from continuing operations between 37 cents and 45 cents per share in 2009, on revenue of $4.55 billion to $4.65 billion. Admissions are expected to remain flat or grow up to 1 percent.
Wall Street, on average, is predicting full-year profit of 42 cents per share on revenue of $4.6 billion.
via yahoo
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