Core Equity Research

Health Management Associates Inc. Facing Problems To Increase Profits

Health Management Associates Inc. (NYSE:HMA) engages in the operation of general acute care hospitals and other health care facilities in non-urban communities in the United States. The company generally operates in the southern states of the US. The chart below shows the states in which the company is currently operating.

(click to enlarge)

Categorized as an aggressive growth company, it has increased its net revenues at an average rate of 14% and grown its number of licensed beds by 7.2% over the past three years. However, despite its substantial growth, the company has been unable to translate this into higher profits due to a gradual decline in the company's net and operating margins over the years.

Its operating...

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