Health Management Associates, Inc. Previews Fourth Quarter and Year-End 2012 Results, and Announces 2013 Objectives

  Health Management Associates, Inc. Previews Fourth Quarter and Year-End 2012
  Results, and Announces 2013 Objectives

Business Wire

NAPLES, Fla. -- January 13, 2013

Health Management Associates, Inc. (NYSE: HMA) announced today its expected,
unaudited results of operations for the fourth quarter and year ended December
31, 2012.

From continuing operations for the fourth quarter, Health Management expects
to report net revenue of approximately $1.48 billion, Adjusted EBITDA of
between $253 and $260 million, and diluted earnings per share (“EPS”) from
continuing operations attributable to Health Management Associates, Inc. of
between $0.19 and $0.21. Impacting the fourth quarter was approximately $0.04
per diluted share of incremental legal and investigation expense and
approximately $0.02 to $0.03 per diluted share related to Mississippi Medicaid
payment reductions, which were offset by Medicare and Medicaid Healthcare
Information Technology (“HCIT”) incentive payments. Excluding the impact of
interest rate swap accounting, including mark-to-market adjustments and
Medicare and Medicaid HCIT incentive payments, net of Medicaid rate
reductions, diluted EPS from continuing operations is expected to be between
$0.12 and $0.13, as shown in the table accompanying this press release. For
continuing same hospital operations, compared to the prior year’s fourth
quarter, Health Management expects surgeries to increase 0.9%, adjusted
admissions to be nearly flat at (0.1)%, and admissions to decline 4.7%.
Adjusted EBITDA is not a GAAP measure and footnote 1 to the 2013 Objective
Range table below contains disclaimers and other important information
regarding how Health Management defines and uses Adjusted EBITDA.

From continuing operations for the year ended December 31, 2012 Health
Management expects to report net revenue of $5.87 to $5.88 billion and diluted
EPS attributable to Health Management Associates, Inc. of between $0.66 and
$0.69. Excluding the impact of interest rate swap accounting, including
mark-to-market adjustments and Medicare and Medicaid HCIT incentive payments,
net of Medicaid rate reductions, diluted EPS from continuing operations is
expected to be between $0.75 and $0.76, as shown in the table accompanying
this press release.

“Our preliminary 2012 results reflect an ongoing difficult economic backdrop.
However, by continuing to focus on delivering high quality care, while
maintaining strong fiscal discipline, we achieved solid same hospital results
for the quarter and the year,” said Gary Newsome, President and Chief
Executive Officer of Health Management. "The health care industry is in the
midst of significant change, and we're taking important steps that we believe
will best position Health Management for continued success as health care
reform continues to be implemented. We believe that the change the industry is
experiencing is creating growth opportunities from hospital partnerships and
acquisitions - an attractive area for capital deployment - and we expect this
environment will continue for the foreseeable future.”

The table below sets forth selected information concerning Health Management’s
objectives for the year ending December 31, 2013. These objectives are based
on Health Management's historical operating performance, current trends and
other assumptions that management believes are reasonable at this time. These
objectives exclude any potential hospital partnerships and acquisitions that
may be completed in 2013.

                                                       2013 Objective Range
  Adjusted Admissions growth (same hospital)              (1.0%) to 1.0%
  Net revenue (in millions, before bad debt expense)      $7,000 to $7,200
  Provision for doubtful accounts as a percentage of      13.5% to 14.5%
  net revenue
  Adjusted EBITDA^1 (in millions) ^ 2                     $978 to $1,038
  Interest expense, net (in millions)                     $275 to $290
  Income from continuing operations attributable to
  Health Management Associates, Inc. per share –          $0.86 to $1.01
  diluted^2
  Net income attributable to noncontrolling interests     $27 to $31
  (in millions)
  Capital expenditures as a percentage of net             4.5% to 5.5%
  revenue, after bad debt expense
  HCIT meaningful use reimbursement  in adjusted          $75 to $85
  EBITDA (in millions)
                                                          
  Items not included above:
  Interest rate swap interest expense (in millions)       $75 to $85

    
       Adjusted EBITDA is defined as consolidated net income before
       discontinued operations, net gains (losses) on sales of assets, net
       interest and other income, interest expense, income taxes, and
       depreciation and amortization. Adjusted EBITDA is not a measure
       determined in accordance with generally accepted accounting principles
       in the United States, commonly known as GAAP. Nevertheless, Health
       Management believes that providing non-GAAP information such as
  1.   Adjusted EBITDA is important for investors and other readers of Health
       Management's consolidated financial statements, as it is commonly used
       as an analytical indicator within the health care industry and Health
       Management's debt facilities contain covenants that use Adjusted EBITDA
       in their calculations. Because Adjusted EBITDA is a non-GAAP measure
       and is thus susceptible to varying calculations, Adjusted EBITDA, as
       presented, may not be directly comparable to other similarly titled
       measures used by other companies.
  2.   Refer to attached tables for additional detail on Adjusted EBITDA and
       EPS.
       

During 2012, Health Management hospitals expect to recognize $90 to $95
million of Medicare/Medicaid HCIT incentive payments. Based on current 2013
attestation schedules and cost report year ends for its hospitals, Health
Management expects to recognize approximately $75 to $85 million of
Medicare/Medicaid HCIT incentive payments during the year ending December 31,
2013.

Health Management will host a conference call to discuss its preliminary 2012
results and 2013 objectives in further detail on Monday, January 14, 2013 at
9:00 AM ET. All interested investors are invited to participate in the
conference call by dialing (877) 476-3476 or from International locations by
dialing (973) 200-3374, and referencing conference ID 88437122.

This conference call will also be simulcast on the Internet. To access the
webcast, interested investors should go to the Investor Relations section of
Health Management’s website located at www.hma.com. A replay of the conference
call will be available on Health Management’s website.

Health Management enables America's best local health care by providing the
people, processes, capital and expertise necessary for its hospital and
physician partners to fulfill their local missions of delivering superior
health care services. Health Management, through its subsidiaries, operates 70
hospitals with approximately 10,500 licensed beds in non-urban communities
located throughout the United States.

All references to "Health Management," "HMA" or the "Company" used in this
release refer to Health Management Associates, Inc. and its affiliates.

                          Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking statements are
subject to risks, uncertainties and assumptions and are identified by words
such as "expects," "estimates," "projects," "anticipates," "believes,"
“intends,” "plans," “may,” “continues,” “should,” "could" and other similar
words. All statements addressing operating performance, events or developments
that Health Management Associates, Inc. expects or anticipates will occur in
the future, including but not limited to incurrence of indebtedness,
projections of revenue, income or loss, capital expenditures, earnings per
share, debt structure, the provision for doubtful accounts, capital structure,
repayment of indebtedness, the amount and timing of funds under the meaningful
use measurement standard of various HCIT incentive programs, other financial
items and operating statistics, statements regarding the plans and objectives
of management for future operations, innovations, or market service
development, statements regarding acquisitions, joint ventures, divestitures
and other proposed or contemplated transactions (including but not limited to
statements regarding the potential for future acquisitions and perceived
benefits of acquisitions), statements of future economic performance,
statements regarding legal proceedings and other loss contingencies (including
but not limited to the timing and amount of costs incurred in connection with
such proceedings), statements regarding market risk exposures, statements
regarding the effects and/or interpretations of recently enacted or future
health care laws and regulations, statements of the beliefs or assumptions
underlying or relating to any of the foregoing statements, and other
statements which are other than statements of historical fact, are considered
to be "forward-looking statements."

Because they are forward-looking, such statements should be evaluated in light
of important risk factors and uncertainties. These risk factors and
uncertainties are more fully described in Health Management Associates, Inc.'s
most recent Annual Report on Form 10-K, and Quarterly Report on Form 10-Q for
the quarterly period ended June 30, 2012, including under the heading entitled
"Risk Factors." Should one or more of these risks or uncertainties
materialize, or should any of Health Management Associates, Inc.'s underlying
beliefs or assumptions prove incorrect, actual results could vary materially
from those currently anticipated. In addition, undue reliance should not be
placed on Health Management Associates, Inc.'s forward-looking statements.
Except as required by law, Health Management Associates, Inc. disclaims any
obligation to update its risk factors or to publicly announce updates to the
forward-looking statements contained in this press release to reflect new
information, future events or other developments.


HEALTH MANAGEMENT ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION
(unaudited)
              
                Adjusted EBITDA (in millions)
                For the quarter ended December 31,      For the Year Ended December 31,
                2011       2012 (Projected)             2011        2012 (Projected)
                (Actual)                                 (Actual)
                                                                                    
Same
hospital,       $ 227.6     $ 272.8     to   $ 274.1     $ 938.6      $ 1,033.6     to   $ 1,034.9
Adjusted
EBITDA
                                                                                         
Corporate,
acquisitions      (42.4 )     (50.5 )   to     (49.7 )     (152.7 )     (120.8  )   to     (120.0  )
and other
Incremental
legal and         -           (15.2 )   to     (15.1 )     -            (15.2   )   to     (15.1   )
investigation
costs

Medicare and
Medicaid HCIT
incentive
payments, net    38.2      46.3     to    50.7      40.0       65.0       to    69.4    
of Medicaid
rate
reductions
                                                                                         
Adjusted        $ 223.4    $ 253.4    to   $ 260.0    $ 825.9     $ 962.6      to   $ 969.2   
EBITDA
                                                                                         
                                                                                         
                Diluted Earnings Per Share ("EPS")
                For the quarter ended December 31,       For the Year Ended December 31,
                2011        2012 (Projected)             2011         2012 (Projected)
                (Actual)                                 (Actual)
                                                                                         
Continuing
operations      $ 0.13      $ 0.12      to   $ 0.13      $ 0.72       $ 0.75        to   $ 0.76
EPS, as
adjusted

Medicare and
Medicaid HCIT
incentive
payments, net     0.10        0.12      to     0.13        0.09         0.16        to     0.17
of Medicaid
rate
reductions
                                                                                         
Write-off of
deferred debt     (0.06 )     -         to     -           (0.06  )     -           to     -
issuance
costs
                                                                                         
Interest rate
swap             (0.04 )    (0.05 )   to    (0.05 )    (0.04  )    (0.25   )   to    (0.25   )
accounting

EPS from
continuing
operations,
attributable
to Health       $ 0.13     $ 0.19     to   $ 0.21     $ 0.71      $ 0.66       to   $ 0.68    
Management
Associates,
Inc. common
stockholders
                                                                                                   

               
HEALTH MANAGEMENT ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION
(unaudited)
                 
                 Projected Adjusted EBITDA Range (in millions)
                 2012                            2013
                                                                
Same hospital,
Adjusted         $ 1,106.2     to   $ 1,107.5     $ 1,173.2     to   $ 1,192.9
EBITDA
                                                                     
Corporate,
acquisitions
and other,         (144.1  )   to     (143.2  )     (160.0  )   to     (165.0  )
excluding
legal fees
                                                                     
Legal fees         (64.5   )   to     (64.5   )     (50.0   )   to     (35.0   )

Medicare and
Medicaid HCIT
incentive
payments, net     65.0       to    69.4        15.0       to    45.0    
of Medicaid
rate
reductions
                                                                     
Adjusted         $ 962.6      to   $ 969.2      $ 978.2      to   $ 1,037.9 
EBITDA
                                                                     
                                                                     
                 Projected Diluted Earnings Per Share ("EPS)
                 2012                             2013
                                                                     
Continuing
operations       $ 0.91        to   $ 0.93        $ 0.86        to   $ 1.01
EPS, as
adjusted

Interest rate
swap and          (0.25   )   to    (0.25   )    (0.19   )   to    (0.22   )
mark-to-market
adjustments

EPS from
continuing
operations,
attributable
to Health        $ 0.66       to   $ 0.68       $ 0.67       to   $ 0.79    
Management
Assoicates,
Inc. common
stockholders

Contact:

Health Management Associates, Inc.
John C. Merriwether, 239-598-3131
Vice President of Financial Relations