HMA Set to Start New JV - Analyst Blog
April 02 2013 - 10:50AM
Zacks
Health Management
Associates (HMA), a leading operator of general acute care
hospitals, recently revealed that its subsidiary has accomplished a
fresh joint venture with the Bayfront Health System of St.
Petersburg, Florida. The deal went into effect on April 1, 2013.
The joint venture will be guided by local reps of Health Management
and Bayfront.
Consequently, Health Management now
holds an 80% stake in the Bayfront Medical Center. It has also
launched a clinical association with Shands HealthCare (a component
of UF&Shands, University of Florida Academic Health Center).
The remaining 20% stake will be owned by Bayfront Health, Education
and Research Organization, which is a non-profit organization.
Health Management is engaged in the
ownership and operation of general acute care hospitals in
non-urban communities across the U.S. The company is an active
acquirer of underperforming hospitals with a turnaround potential
in high-growth markets. The company runs 71 hospitals with about
11,000 beds in rural and semi-urban areas across the country.
Health Management’s competitors in niche markets include
Community Health Systems (CYH).
Health Management benefits from a
gradual growth in admissions largely due to improvements in
Emergency Room, sustained physician recruitment and service
development. Moreover, it is well placed to expand margins from
continuing operations and drive above-industry average earnings
growth. However, the debt burden for the company remains
sizeable.
The stock carries a Zacks Rank #3
(Hold). Given Imaging Ltd. (GIVN) and
Cyberonics Inc. (CYBX) are Zacks Rank #1 (Strong
Buy) and Zacks Rank #2 (Buy) stocks, respectively, which are
expected to do well.
CYBERONICS INC (CYBX): Free Stock Analysis Report
COMMNTY HLTH SY (CYH): Free Stock Analysis Report
GIVEN IMAGING (GIVN): Free Stock Analysis Report
HEALTH MGT ASSC (HMA): Free Stock Analysis Report
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