Health Management Associates Profit Plunges - Quick Facts

(RTTNews) - Health Management Associates Inc. (HMA) Friday reported second-quarter net income of $7 million or $0.03 per share, compared with $37 million or $0.14 per share last year.

Revenues for the quarter were $1.69 billion, compared with $1.7 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.16 per share on revenues of $1.70 billion for the quarter. Analysts' estimates typically exclude special items.

Health Management's provision for doubtful accounts was $241 million, or 14.1% of net revenue before the provision for doubtful accounts, for the quarter. This compares with $214.6 million, or 12.7% of net revenue before the provision of doubtful accounts, a year ago.

As earlier announced, Community Health Systems Inc. (CYH) and Health Management Associates have entered into a definitive merger agreement pursuant to which CHS will acquire HMA for about $7.6 billion, including the assumption of approximately $3.7 billion of debts. The deal is expected to close by the end of the first quarter of 2014.