Research on Health Management Associates and Community Health Systems: Inorganic Growth of Healthcare
LONDON, February 21, 2013 /PRNewswire/ --
The debate over Public versus Private Healthcare has been the focus of much political grandstanding lately. There are opportunities being created in the industry by changes within the industry as well as changing beliefs and lifestyle of the people. But as the economic recession dragged on, hospitals are encountering lower patient utilization with people delaying some medical care or lose of health insurance. StockCall has posted free technical research reports on Health Management Associates Inc. (NYSE: HMA) and Community Health Systems Inc. (NYSE:CYH) and these can be accessed by signing up at
http://www.stockcall.com/analysis
Hospitals Industry Headlines
Revenues are falling due Reimbursement reductions from Medicare, and Medicaid and commercial health plans are all under pressure. There is a declining inpatient admissions and falling outpatient indicators. Then there are also Federal cuts in medical spending. With so many uncertainties, hospitals are resorting to orthodox measures like cost-cutting including staff reduction, conservation of capital and unorthodox measures like mergers and acquisitions, affiliations and other forms of collaborations with various market participants. The industry is recently abuzz with the news of a joint venture between Health Management Associates and Bayfront Health System. Additionally, Community Health Systems would be announcing its fourth quarter and annual report for the year ending 31st December 2012 today (Results were not available at time this article was completed).
Hospitals Industry Headlines
Revenues are falling due Reimbursement reductions from Medicare, and Medicaid and commercial health plans are all under pressure. There is a declining inpatient admissions and falling outpatient indicators. Then there are also Federal cuts in medical spending. With so many uncertainties, hospitals are resorting to orthodox measures like cost-cutting including staff reduction, conservation of capital and unorthodox measures like mergers and acquisitions, affiliations and other forms of collaborations with various market participants. The industry is recently abuzz with the news of a joint venture between Health Management Associates Inc. (NYSE: HMA) and Bayfront Health System. Additionally, Community Health Systems Inc. (NYSE:CYH) would be announcing its fourth quarter and annual report for the year ending 31st December 2012 today (Results were not available at time this article was completed).
Joint Venture between HMA and Bayfront Health Systems
Health Management Associates., through its subsidiaries, engages in the operation of general acute care hospitals and other health care facilities in non-urban communities in the United States. In January 2013 the company announced signing of a definitive agreement to partner with Bayfront Health System (a private Not-for-Profit health System) located in St. Petersburg. Download the free report on Health Management Associates Inc. upon registration at http://www.StockCall.com/HMA022113.pdf
After the deal is finalized (it is pending an execution of the lease agreement between the partnership and city of St Petersburg and other formalities) HMA will acquire 80% interest in Bayfront and an expected amount of $150 million will be invested by HMA in newly formed Bayfront HERO (Health, Education and Research organization). HMA also plans to make Bayfront its Hub for its west central and southwest Florida hospitals wherein all the complicated cases would be sent to Bayfront rather than non-affiliate hospitals thus not losing out any business.
For the quarter ending December 2012, the company's revenue rose by 8.445 to $1.72 billion though adjusted EPS declined to $0.12 from $0.26 for the same period of preceding year. The company is currently trading around $10.95. It has a P/E ratio of 15.72 and EPS of 0.67
Community Health Systems Reporting Earnings today
Community Health Systems is all set to report its 4th quarter and its annual report today, 21st February 2013. The company is presently trading around $42 with EPS of 2.65 and P/E of 15.54. Community Health Systems Inc. technical report can be accessed for free by signing up at
http://www.StockCall.com/CYH022113.pdf
In the 3rd quarter of 2012, the company had reported its revenues of $3.2 billion which can be expected to remain at the same level for the 4th quarter also. Annual revenues are slated to be approximately $12.9 billion. The company last year had acquired 4 hospitals in Pennsylvania
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