Health Management Associates
), a leading operator of general acute care hospitals, recently
revealed that its subsidiary has accomplished a fresh joint
venture with the Bayfront Health System of St. Petersburg,
Florida. The deal went into effect on April 1, 2013. The joint
venture will be guided by local reps of Health Management and
Consequently, Health Management now holds an 80% stake in the
Bayfront Medical Center. It has also launched a clinical
association with Shands HealthCare (a component of UF&Shands,
University of Florida Academic Health Center). The remaining 20%
stake will be owned by Bayfront Health, Education and Research
Organization, which is a non-profit organization.
Health Management is engaged in the ownership and operation of
general acute care hospitals in non-urban communities across the
U.S. The company is an active acquirer of underperforming
hospitals with a turnaround potential in high-growth markets. The
company runs 71 hospitals with about 11,000 beds in rural and
semi-urban areas across the country. Health Management's
competitors in niche markets include
Community Health Systems
Health Management benefits from a gradual growth in admissions
largely due to improvements in Emergency Room, sustained
physician recruitment and service development. Moreover, it is
well placed to expand margins from continuing operations and
drive above-industry average earnings growth. However, the debt
burden for the company remains sizeable.
The stock carries a Zacks Rank #3 (Hold).
Given Imaging Ltd.
) are Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks,
respectively, which are expected to do well.
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