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Health Management Associates

HEALTH MANAGEMENT ASSOCIATES, INC. (NYSE‹HMA) is the premier operator of acute care hospitals primarily in the southeast and southwest areas of non-urban America. It focuses on hospitals in non-urban America because:

  • frequently those communities are underserved medically, and opportunities for improving healthcare services are therefore substantial;
  • the geographic areas where HMA operates are growing rapidly ¬ partly from a shift of manufacturing jobs from the Northeast and Midwest and partly from the continued migration of sunshineseeking retirees, who use medical services more often than the population as a whole; and
  • competition among non-urban hospitals is less than among hospitals in major metropolitan centers. HMA's growth is twofold - by increasing revenues in hospitals it already owns and by acquiring other hospitals. The hospitals HMA chooses to acquire:
  • have a clear demographic need;
  • demonstrate high potential for growth;
  • are located in the southeast or southwest in growing communities with populations of 40,000 to 300,000;
  • are preferably located in states with Certificate of Need regulations;
  • possess an established physician base; and
  • are available at reasonable prices.

When HMA acquires a hospital, it immediately sets out to upgrade the quality of healthcare delivery and simultaneously expand its medical services so that community residents no longer need to commute to major urban centers for specialty medical care, except in rare instances. Apart from providing additional medical services, HMA upgrades the physical facility to today's technology. It also introduces a number of proven hospital management practices that greatly improve a patient's hospitalization experience, principally through decentralized management with centralized operating systems.

HMA's strategy enables local physicians to refer more patients to the HMA community hospital than previously; patients from outlying areas to now use the upgraded HMA healthcare centers when previously they journeyed long distances to larger city hospitals, and enable HMA to generate substantially more revenue per dollar of fixed cost than the same hospitals did prior to its acquisition by HMA.