Health Management Associates Earnings Fall, Dividends Suspended

Health Management Associates, Inc. announced its consolidated financial results for the three months ended March 31, 2007. For the period, HMA reported net operating revenue of $1,143.5 million; earnings before interest, income taxes, depreciation, amortization, refinancing and debt modification costs and after minority interest ("EBITDA") of $193.9 million; net income of $65.0 million; income from continuing operations of $65.7 million; and both diluted earnings per share ("EPS") and diluted EPS from continuing operations of $0.27.

Net operating revenue from continuing operations increased 13.3%, total admissions from continuing operations grew 2.6%, and adjusted admissions from continuing operations grew 4.8% in the first quarter as compared to the same quarter a year ago, reflecting the admissions contribution from hospitals acquired by HMA during the year ended December 31, 2006, as well as HMA's de novo acute care hospital, which opened during the first quarter.

Net operating revenue from continuing operations at hospitals owned and operated by HMA for one year or more, referred to as same hospitals, increased 6.8% during the first quarter compared to the same quarter a year ago. Compared to the same quarter a year ago, same hospital admissions from continuing operations decreased 1.0%, and same hospital adjusted admissions from continuing operations increased 0.6%. Compared to the same quarter a year ago, during the first quarter net operating revenue per adjusted admission at HMA's continuing same hospitals increased 6.2%, surgeries from continuing same hospital operations decreased 2.0% and emergency room visits increased 3.6%.