Research on Health Management Associates and Community Health Systems: Inorganic Growth of Healthcare

    Research on Health Management Associates and Community Health Systems:
                        Inorganic Growth of Healthcare

  PR Newswire

  LONDON, February 21, 2013

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 31 ^st 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 31 ^st
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 4 ^th quarter and its annual
report today, 21 ^st 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 3 ^rd 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 4 ^th
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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