Issues to weigh on HMA earnings

Naples-based Health Management Associates announced today that it expects to earn between 31 cents and 34 cents per share in the second quarter.

HMA said continuing soft hospital volumes and increases in uncompensated care are going to weigh on its quarterly results. The company plans to report complete results for the second quarter before the market opens on July 25.

"Patient volumes and uncompensated care continue to be the two most significant issues for the hospital industry, including HMA," said Joseph V. Vumbacco, chief executive officer of HMA, in a prepared statement. "HMA continues to work with its physicians to improve the quality of care and to explore joint ventures and other collaborative relationships which further align the needs of our patients, physicians and hospitals.”

With lower patient volumes and uncompensated care expected to continue, HMA revised its projected annual earnings per share to between $1.30 and $1.34. Last year, the company had earnings of $1.41 per share.

HMA also announced today that its board of directors approved a program to repurchase up to $250 million of HMA's common stock. Purchases will be made in the open market and will continue until the company has repurchased $250 million of its common stock or until HMA decides to end the program, the company said.

HMA owns and operates 62 hospitals in 16 states with 8,817 licensed beds.