Health Management Associates Inc (HMA): Weak Vitals And Outlook

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Community Health Systems (NYSE:CYH) Health Management Associates Inc (NYSE:HMA) Systems and Tenet Healthcare Corp (NYSE:THC) stocks also struggled during most of April. However, the weakness in the two companies’ shares probably stemmed more from analyst downgrades over valuation concerns. Like HCA Holdings Inc (NYSE:HCA), Community Health Systems (NYSE:CYH) and Tenet Healthcare Corp (NYSE:THC) have both seen shares come back strongly in the past week or so.

Part of the problem for HMA stems from an unflattering 60 Minutes segment aired last December. Some speculate that the TV news program’s story on the company contributed to fewer admissions.

Despite HMA’s multitude of problems, I don’t think anyone needs to call an ambulance just yet. The company, like its peers, should benefit from Obamacare in the days ahead if more uninsured Americans gain insurance as promised.

However, I wouldn’t recommend buying Health Management Associates Inc (NYSE:HMA) shares right now. It’s probably wise to hold off until more is known about the SEC investigation. If HMA receives more bad news on that front, though, turn on the sirens.

The article Call an Ambulance for This Hospital Chain? originally appeared on Fool.com is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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