Health Management Associates Inc.
), a leading operator of general acute care hospitals, recently
reported that it will extend its operating and management
expertise. Operating and management consultancy is to also be
offered to hospitals that are not affiliated to it and situated
in certain markets.
Health Management believes that a large number of community
hospitals may be searching for expertise on management and
operations-related issues. The company believes that its
offerings in these areas will be timely given the evolving nature
of the hospital business.
Institutions that choose to be associated with Health
Management's management division will be recipients of corporate
consulting offerings. They will also be recipients of market
insights and Health Management will share with them best
practices in the industry. In addition, Health Management will
provide advice on financial matters, information technology and
Health Management was launched in the 1970s. It 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.
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. The debt burden for
the company remains sizeable.
We currently have a Zacks Rank #3 (Hold) on Health
Management. We are more positive about
Acadia Healthcare Company, Inc.
), which carries a Zacks Rank #2 (Buy). We are also positive
) each of which carries a Zacks Rank #2 (Buy) and are expected to
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