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HMA lost $328M in final year

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Health Management Associates Inc. lost more than $328 million in 2013, after earning nearly $150 million in 2012 and more than $173 million in 2011, according to a new public filing.

The Florida-based for-profit health care company owned three hospitals in Central Pennsylvania before being acquired by Tennessee-based Community Health Systems Inc. in January.

CHS now operates Carlisle Regional Medical Center, Lancaster Regional Medical Center and Heart of Lancaster Regional Medical Center, as well as Memorial Hospital, which it had acquired previously.

In the midst of the acquisition process, shareholder Glenview Capital Management LLC led shareholders in voting to replace the entire HMA board. According to the filing, costs occasioned by the change in control were as follows:

• $42.1 million of incremental stock compensation expense

• $4 million of incremental compensation expense

• $39.1 million of unvested cash awards

Additionally, costs related to the transaction with CHS for the year were as follows.

• $28.6 million in outside fees

• $19.3 million in severance and retention costs

The latest filing did not include admissions data, but in the third quarter of 2013 HMA reported that its same-hospital admissions were down 6.8 percent from the same period the previous year.

Write to the Editorial Department at editorial@cpbj.com

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