No Pain, No Gain ;O): Fourth

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Tuesday, February 28, 2012

Magellan Health Services Reports Fourth Quarter and Full Year 2011 Financial Results

AVON, Conn.--(BUSINESS WIRE)--

Magellan Health Services Inc. (NASDAQ: MGLN - News) today reported financial results for the fourth quarter and full year 2011, as summarized below. For the year ended December 31, 2011, the company reported net revenue of $2,799.4 million, segment profit of $270.4 million, and net income of $129.6 million or $4.17 per diluted common share. Segment profit represents income from operations before stock compensation expense, depreciation and amortization, interest expense, interest income, gain on sale of assets, special charges or benefits, and income taxes.

Financial Results

As of December 31, 2011, the company had unrestricted cash and investments of $183.2 million.

“Magellan had a strong fourth quarter, which completed a successful 2011,” said René Lerer, M.D., chairman and chief executive officer. “In addition to achieving solid financial results, our accomplishments during the year included attracting new customers, retaining existing customers and implementing a focused growth strategy in Medicaid and Pharmacy. Contributing to Magellan’s success was strong performance in our Radiology Benefits Management and Medicaid Administration business segments. Additionally, our Public Sector and Commercial behavioral health segments had important customer wins that are being implemented in the first quarter of 2012.

“We are moving aggressively in our two leading strategic initiatives – expanding more broadly into the Medicaid market and providing comprehensive management of the total drug spend. These are essential components of our growth strategy, and have been and will continue to be a focus for investment. We have significant capabilities and experience in serving the Medicaid population and managing pharmaceutical costs, and we will continue to invest to grow those capabilities to meet the needs of customers and ensure our success.”

“There is a significant level of activity across our business lines to achieve growth, retention and profitability objectives, while maintaining our track record of product innovation,” said Karen S. Rohan, Magellan’s president. “We successfully implemented new contracts with Blue Shield of California and the Central Region of New York State on January 1, and will go live with the state of Louisiana on March 1. These contracts expand our presence in the marketplace by serving millions of new members.

“Throughout 2012, we will intensify our effort to renew key accounts and accelerate initiatives to improve business outcomes. We have already taken decisive steps to position Magellan to be successful for the rebid of the Maricopa County, Ariz., account. Our recently announced joint venture with Phoenix Health Plan is a clear demonstration of our ability to adapt and innovate in a changing marketplace where customers are seeking new solutions. Additionally, driving operational excellence remains a priority, and we are executing targeted initiatives to address cost pressures in our Commercial behavioral health segment.”

Outlook

“Overall we completed a strong 2011, exceeding our segment profit guidance for the year,” said Jonathan N. Rubin, chief financial officer. “In addition to delivering good results, we returned significant capital to shareholders through our share repurchase program. Magellan’s strong cash flow and the availability of a previously announced credit facility give us the financial flexibility to support our strategy for growth.

“We are reaffirming our guidance for 2012, which calls for net revenue in the range of $3.2 billion to $3.4 billion, and net income in the range of $91 million to $109 million, which translates into diluted earnings per share in the range of $3.25 to $3.89. Additionally, we expect segment profit for 2012 to be in the range of $240 million to $260 million.”

Earnings Results Conference Call

Management will host a conference call at 10:00 a.m. Eastern Time on Tuesday, February 28, 2012. To participate in the conference call, interested parties should call 1-888-566-8408 and reference the pass code Fourth Quarter Earnings Call 2011 approximately 15 minutes before the start of the call. The conference call will also be available via a live Webcast at Magellan’s investor relations page at www.MagellanHealth.com.

About Magellan Health Services: Headquartered in Avon, Conn., Magellan Health Services Inc. is a leading specialty health care management organization with expertise in managing behavioral health, radiology and specialty pharmaceuticals, as well as public sector pharmacy benefits programs. Magellan delivers innovative solutions to improve quality outcomes and optimize the cost of care for those we serve. Magellan’s customers include health plans, employers and government agencies, serving approximately 31.1 million members in our behavioral health business, 15.6 million members in our radiology benefits management segment, and 6 million members in our medical pharmacy management product. In addition, the specialty pharmaceutical segment serves 41 health plans and several pharmaceutical manufacturers and state Medicaid programs. The company’s Medicaid Administration segment serves 25 states and the District of Columbia. For more information, visit www.MagellanHealth.com.

Cautionary Statement

This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 and the Securities Act of 1933, as amended, which involve a number of risks and uncertainties. All statements, other than statements of historical information provided herein, may be deemed to be forward-looking statements including, without limitation, statements regarding estimates of 2012 net revenue, net income, segment profit, earnings per share, and strategy. These statements are based on management’s analysis, judgment, belief and expectation only as of the date hereof, and are subject to uncertainty and changes in circumstances. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “may,” “should,” “could,” “estimate,” “intend” and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially due to, among other things, the possible election of certain of the company’s customers to manage the health care services of their members directly; changes in rates paid to and/or by the company by customers and/or providers; higher utilization of health care services by the company’s risk members; delays, higher costs or inability to implement new business or other company initiatives; the impact of changes in the contracting model for Medicaid contracts; termination or non-renewal of customer contracts; the impact of new or amended laws or regulations; governmental inquiries; litigation; competition; operational issues; health care reform; and general business conditions. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included within the company’s Annual Report on Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission on February 25, 2011, and the company’s subsequent Quarterly Reports on Form 10-Q filed during 2011 and the company’s Annual Report on Form 10-K for the year ended December 31, 2011, expected to be filed with the Securities and Exchange Commission and posted on the company’s website later today. Readers are cautioned not to place undue reliance on these forward-looking statements. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of this release. Segment profit information referred to herein may be considered a non-GAAP financial measure. Further information regarding this measure, including the reasons management considers this information useful to investors, are included in the company’s most recent Annual Report on Form 10-K and on subsequent Form 10-Qs.

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Universal Health Services, Inc. Reports 2011 Fourth Quarter and Full Year Earnings and 2012 Earnings Guidance

KING OF PRUSSIA, Pa., Feb. 27, 2012 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS - News) announced today that its reported net income attributable to UHS was $95.3 million, or $.98 per diluted share, during the fourth quarter of 2011 as compared to $37.2 million, or $.38 per diluted share, during the comparable prior year quarter.

Net revenues increased 18% to $1.84 billion during the fourth quarter of 2011 as compared to $1.56 billion during the fourth quarter of 2010. The increase in net revenues during the fourth quarter of 2011, as compared to the comparable quarter of the prior year, was due primarily to the revenues generated at the behavioral health care facilities acquired from Psychiatric Solutions, Inc. ("PSI") in November, 2010.

Consolidated Results of Operations, As Reported – Years ended December 31, 2011 and 2010:

Reported net income attributable to UHS was $398.2 million, or $4.04 per diluted share, during the year ended December 31, 2011 as compared to $230.2 million, or $2.34 per diluted share, during 2010. Net revenues increased 35% to $7.50 billion during 2011 as compared to $5.57 billion during 2010. The increase in revenues was due primarily to the acquisition of the behavioral health facilities formerly owned by PSI.

"This past quarter marked the one year anniversary of our acquisition of PSI and we remain pleased with how that integration process has gone, as well as, with the continued strong demand for our behavioral services, in general", said Alan B. Miller, Chief Executive Officer. "As we enter 2012, we are encouraged by the opportunities to expand our presence in the behavioral health business and we look forward to improvement in our acute care business as the economy continues its gradual recovery."

Consolidated Results of Operations, As Adjusted – Three-month periods ended December 31, 2011 and 2010:

After adjusting the reported results for the three-month periods ended December 31, 2011 and 2010 to neutralize the net impact of the items mentioned below, and as reflected on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedules"), our adjusted net income attributable to UHS was $88.8 million, or $.91 per diluted share, during the fourth quarter of 2011 as compared to $57.5 million, or $.58 per diluted share, during the fourth quarter of 2010.

As indicated on the attached Supplemental Schedules, included in our net income attributable to UHS during the three-month period ended December 31, 2011, was the favorable after-tax impact of $6.5 million, or $.07 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2011 based upon a reserve analysis.

As indicated on the attached Supplemental Schedules, included in our net income attributable to UHS during the three-month period ended December 31, 2010, was a net charge of $20.4 million, or $.20 per diluted share, consisting of: (i) the unfavorable after-tax impact of $24.9 million, or $.25 per diluted share, resulting from the recording of transaction fees incurred in connection with our acquisition of PSI; (ii) the unfavorable after-tax impact of $9.2 million, or $.09 per diluted share, resulting from the charge incurred in connection with the previously disclosed split-dollar life insurance agreements; (iii) the unfavorable after-tax impact of $4.1 million, or $.04 per diluted share, resulting from the write-off of certain construction costs, partially offset by; (iv) the favorable after-tax impact of $17.9 million, or $.18 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2010 based upon a reserve analysis.

Consolidated Results of Operations, As Adjusted – Years ended December 31, 2011 and 2010:

After adjusting the reported results for the years ended December 31, 2011 and 2010 to neutralize the impact of the items mentioned below, and as reflected on the attached Supplemental Schedule, our adjusted net income attributable to UHS was $391.7 million, or $3.97 per diluted share, during 2011 as compared to $249.8 million, or $2.54 per diluted share, during 2010.

As indicated on the attached Supplemental Schedules, included in our net income attributable to UHS during the year ended December 31, 2011, was the favorable after-tax impact of $6.5 million, or $.07 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2011.

As indicated on the attached Supplemental Schedules, included in our net income attributable to UHS during the year ended December 31, 2010, was a net charge of $19.6 million, or $.20 per diluted share, consisting of: (i) the unfavorable after-tax impact of $38.7 million, or $.39 per diluted share, resulting from the recording of transaction fees incurred in connection with our acquisition of PSI; (ii) the unfavorable after-tax impact of $9.2 million, or $.09 per diluted share, resulting from the charge incurred in connection with split-dollar life insurance agreements; (iii) the unfavorable after-tax impact of $4.1 million, or $.04 per diluted share, resulting from the write-off of certain construction costs, partially offset by; (iv) the favorable after-tax impact of $28.1 million, or $.28 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2010, and; (v) a favorable discrete tax item of $4.3 million, or $.04 per diluted share.

Acute Care Services - Three-month periods ended December 31, 2011 and 2010:

At our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 0.3% and adjusted patient days increased 0.8% during the fourth quarter of 2011, as compared to the fourth quarter of 2010. Net revenues at these facilities increased 1.6% during the fourth quarter of 2011 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 1.3% while net revenue per adjusted patient day increased 0.8% during the fourth quarter of 2011 as compared to the comparable quarter of the prior year. On a same facility basis, the operating margin (net revenues less salaries, wages and benefits, other operating expenses, supplies expense and provision for doubtful accounts, excluding the items indicated on the Supplemental Schedules) at our acute care hospitals decreased to 13.3% during the fourth quarter of 2011 as compared to 14.4% during the fourth quarter of 2010. The decrease in the operating margin at our acute care hospitals during the fourth quarter of 2011 was caused by pressure on patient volumes and payor mix as several of our more significant markets continue to be negatively impacted by local economic trends.

We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $248 million and $208 million during the three-month periods ended December 31, 2011 and 2010, respectively.

Acute Care Services – Years ended December 31, 2011 and 2010:

During the year ended December 31, 2011, on a same facility basis, adjusted admissions to our acute care facilities were relatively unchanged while adjusted patient days increased 1.7%, as compared to 2010. Net revenues at our acute care facilities increased 4.4% during 2011 as compared to 2010. At these facilities, net revenue per adjusted admission increased 4.5% while net revenue per adjusted patient day increased 2.6% during 2011 as compared to 2010. On a same facility basis, the operating margin at our acute care hospitals increased to 14.7% during 2011 as compared to 14.5% during 2010.

Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $956 million and $807 million during 2011 and 2010, respectively.

Behavioral Health Care Services - Three-month periods ended December 31, 2011 and 2010:

Since the former PSI facilities were acquired by us in mid-November, 2010, for accurate comparability purposes, we have included the patient statistics and financial results for these facilities in our same facility results provided below beginning on December 1st of 2011 and 2010.

At our behavioral health care facilities, on a same facility basis, adjusted admissions increased 8.3% while adjusted patient days increased 4.1% during the fourth quarter of 2011 as compared to the fourth quarter of 2010. Net revenues at these facilities increased 6.3% during the fourth quarter of 2011 as compared to the comparable quarter in the prior year. At these facilities, net revenue per adjusted admission decreased 1.6% while net revenue per adjusted patient day increased 2.4% during the fourth quarter of 2011 over the comparable prior year quarter. The operating margin at our behavioral health care facilities owned during both periods increased to 24.7% during the fourth quarter of 2011 as compared to 22.6% during the fourth quarter of 2010.

Behavioral Health Care Services – Years ended December 31, 2011 and 2010:

During the year ended December 31, 2011, on a same facility basis, adjusted admissions to our behavioral health care facilities increased 7.6% while adjusted patient days increased 3.3%, as compared to 2010. Net revenues at our behavioral health care facilities increased 6.4% during 2011 as compared to 2010. At these facilities, net revenue per adjusted admission decreased 0.8% while net revenue per adjusted patient day increased 3.3% during 2011 as compared to 2010. On a same facility basis, the operating margin at our behavioral health facilities increased to 25.8% during 2011 as compared to 25.3% during 2010.

Accounting for HITECH Act incentive payments and EHR expenses:

The health information technology provisions of the American Recovery and Reinvestment Act (referred to as the "HITECH Act") established criteria related to the "meaningful use" of electronic health records ("EHR") for acute care hospitals and established requirements for the Medicare and Medicaid EHR payment incentive programs.

During 2011, we began implementing EHR applications at certain of our acute care facilities and will continue to do so, on a facility-by-facility basis, until completion which is scheduled to occur by the end of 2013. Our acute care hospitals will be eligible for Medicare and Medicaid EHR incentive payments upon implementation of the EHR application, assuming they meet the "meaningful use" criteria.

There are no EHR-related revenues included in our consolidated results of operations for the three or twelve-month periods ended December 31, 2011. Although we received approximately $11 million of EHR incentive payments during the fourth quarter of 2011 related to state Medicaid programs, these payments have been reflected as deferred revenue on our consolidated balance sheet as of December 31, 2011. These payments will be recorded as revenue on our consolidated statements of income in the periods in which the applicable hospitals are deemed to have met the "meaningful use" criteria. Although our 2011 results of operations include certain EHR-related expenses, the amounts did not have a material impact on our consolidated financial results during the three or twelve-month periods ended December 31, 2011.

During 2012, based upon our scheduled EHR implementations and anticipated "meaningful use" qualifications, we expect to record approximately $12 million of EHR revenues and $17 million of EHR-related incremental expenses resulting in a net after-tax charge of approximately $4 million, or $.04 per diluted share.

2012 Full Year Guidance:

Excluding the unfavorable $.04 per diluted share EHR impact mentioned above, our estimated range of net income attributable to UHS for the year ended December 31, 2012, is $4.33 to $4.48 per diluted share.

During 2012, our net revenues are estimated to increase approximately 5% to $7.24 billion, as compared to $6.89 billion during 2011. Our net revenues for 2012 and 2011 have been adjusted to reflect reclassifications of our provision for doubtful accounts which, beginning on January 1st 2012, will be reflected as a deduction from revenues rather than as an operating expense. This reclassification will have no impact on our net income attributable to UHS.

This guidance range excludes the impact of items, if applicable, that are nonrecurring or non-operational in nature including items such as, but not limited to, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits and other material amounts that may be reflected in our financial statements that relate to prior periods. It is also subject to certain conditions including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.

Conference Call Information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on February 28, 2012. The dial-in number is 1-877-648-7971. A digital recording of the conference call will be available two hours after the completion of the conference call on February 28, 2012 and will continue through midnight on March 13, 2012. The recording can be accessed by calling 1-855-859-2056 and entering the pass code 47643444.

This call will also be available live over the internet at our web site at www.uhsinc.com. The webcast will also be available through the Thomson StreetEvents Network at www.earnings.com or www.streetevents.com, a password-protected event management site for institutional investors.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

Universal Health Services, Inc. ("UHS") is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico and the U.S. Virgin Islands. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT - News). For additional information on the Company, visit our web site: http://www.uhsinc.com.

This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2011), may cause the results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine our future results are beyond our capability to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

As mentioned above, our acute care hospitals may qualify for EHR incentive payments upon implementation of a EHR application assuming they meet the "meaningful use" criteria. However, there can be no assurance that we (our acute care hospitals) will ultimately qualify for these incentive payments and, should we qualify, we are unable to quantify the amount of incentive payments we may receive since the amounts are dependent upon various factors including the implementation timing at each hospital. Should we qualify for incentive payments, there may be timing differences in the recognition of the revenues and expenses recorded in connection with the implementation of the EHR application which may cause material period-to-period changes in our future results of operations. Hospitals that do not qualify as a meaningful user of EHR by 2015 are subject to a reduced market basket update to the inpatient prospective payment system standardized amount in 2015 and each subsequent fiscal year. Although we believe that our acute care hospitals will be in compliance with the EHR standards by 2015, there can be no assurance that all of our facilities will be in compliance and therefore not subject to the penalty provision of the HITECH Act.

We believe that operating income, operating margin, adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share and earnings before interest, taxes, depreciation and amortization ("EBITDA"), which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of items that are nonrecurring or non-operational in nature including items such as, but not limited to, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2011. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(quarterly amounts are unaudited)

Provision for doubtful accounts

Less: Net income attributable to

Net income attributable to UHS

Basic earnings per share attributable to UHS (a)

Diluted earnings per share attributable to UHS (a)

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(a) Earnings per share calculation:

Net income attributable to UHS

Less: Net income attributable to unvested restricted share grants

Net income attributable to UHS - basic and diluted

Weighted average number of common shares - basic

Basic earnings per share attributable to UHS:

Weighted average number of common shares

Weighted average number of common shares and equiv. - diluted

Diluted earnings per share attributable to UHS:

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule")

For the three months ended December 31, 2011 and 2010

(in thousands, except per share amounts)

Provision for doubtful accounts

Operating income/margin ("EBITDAR")

Net income attributable to noncontrolling interests

Earnings before, depreciation and amortization, interest expense, and income taxes ("EBITDA")

Income before income taxes attributable to UHS

Net income attributable to UHS

Calculation of Adjusted Net Income Attributable to UHS

Net income attributable to UHS

Reduction of reserves relating to prior years for professional and general liability

self-insured claims, net of income taxes

Acquisition transaction costs, net of income taxes

Write-off certain construction costs, net of income taxes

Charge recorded in connection with split-dollar life insurance agreements

Subtotal after-tax adjustments to net income attributable to UHS

Adjusted net income attributable to UHS

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule")

For the twelve months ended December 31, 2011 and 2010

(in thousands, except per share amounts)

Provision for doubtful accounts

Operating income/margin ("EBITDAR")

Net income attributable to noncontrolling interests

Earnings before, depreciation and amortization, interest expense, and income taxes ("EBITDA")

Income before income taxes attributable to UHS

Net income attributable to UHS

Calculation of Adjusted Net Income Attributable to UHS

Net income attributable to UHS

Reduction of reserves relating to prior years for professional and general liability

self-insured claims, net of income taxes

Reduction of reserves relating to prior years for workers' compensation

self-insured claims, net of income taxes

Acquisition transaction costs, net of income taxes

Write-off certain construction costs, net of income taxes

Charge recorded in connection with split-dollar life insurance agreements

Subtotal after-tax adjustments to net income attributable to UHS

Adjusted net income attributable to UHS

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

Assets of facilities held for sale

Less: accumulated depreciation

Liabilities and Stockholders' Equity

Current maturities of long-term debt

Accounts payable and accrued liabilities

Liabilities of facilities held for sale

Redeemable noncontrolling interest

UHS common stockholders' equity

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

Cash Flows from Operating Activities:

Adjustments to reconcile net income to net

cash provided by operating activities:

Gain on sale of assets and businesses, net

Stock-based compensation expense

Changes in assets & liabilities, net of effects from

acquisitions and dispositions:

Accrued and deferred income taxes

Other working capital accounts

Other assets and deferred charges

Accrued insurance expense, net of commercial premiums paid

Payments made in settlement of self-insurance claims

Net cash provided by operating activities

Cash Flows from Investing Activities:

Property and equipment additions, net of disposals

Acquisition of property and businesses

Proceeds received from sale of assets and businesses

Costs incurred for purchase and implementation of electronic health records application

Net cash used in investing activities

Cash Flows from Financing Activities:

Profit distributions to noncontrolling interests

Proceeds from sale of noncontrolling interest in majority owned business

Net cash (used in) provided by financing activities

Increase in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Supplemental Disclosures of Cash Flow Information:

Income taxes paid, net of refunds

Universal Health Services, Inc.

Supplemental Statistical Information

Revenue Per Adjusted Admission

Revenue Per Adjusted Patient Day

Revenue Per Adjusted Admission

Revenue Per Adjusted Patient Day

Total Debt / Total Capitalization

Acute Care EBITDAR Margin (2)

Behavioral Health EBITDAR Margin (2)

(1) Net of Minority Interest and before the items indicated on the supplemental schedules

(2) Before Corporate overhead allocation, minority interest and prior year self insurance reserve adjustments

UNIVERSAL HEALTH SERVICES, INC.

(1) Pennsylvania Clinical School is excluded in both current and prior years. King George School is excluded

in both current and prior years from July 1st thru December 31st. Facilities acquired in acquisition of

Psychiatric Solutions are included in both current and prior year from December 1st thru December 31st.

Brooke Glen and The Pines/Brighton are excluded in both current and prior years.

UNIVERSAL HEALTH SERVICES, INC.

(1) Pennsylvania Clinical School is excluded in both current and prior years. King George School is excluded

in both current and prior years from July 1st thru December 31st. Facilities acquired in acquisition of

Psychiatric Solutions are included in both current and prior year from December 1st thru December 31st.

Brooke Glen and The Pines/Brighton are excluded in both current and prior years.

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Friday, February 17, 2012

Health Care REIT, Inc. Reports Fourth Quarter and Year End 2011 Results

Fri, Feb 17, 2012, 8:15 AM EST - U.S. Markets open in 1 hr 15 mins

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Wednesday, February 8, 2012

Health Management Associates Inc. Fourth Quarter Earnings Sneak Peek

Health Management Associates, Inc. will unveil its latest earnings on Monday, February 13, 2012. Health Management Associates and its subsidiaries provide health care services to patients in owned and leased facilities located mainly in non-urban communities in the southeastern and southwestern United States.

Health Management Associates, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 21 cents per share, a rise of 31.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 20 cents. Between one and three months ago, the average estimate moved down. It has risen from 19 cents during the last month. For the year, analysts are projecting profit of 80 cents per share, a rise of 23.1% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 19 cents per share versus a mean estimate of profit of 17 cents per share.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Wall St. Revenue Expectations: Analysts are projecting a rise of 17% in revenue from the year-earlier quarter to $1.58 billion.

Analyst Ratings: Analysts are bullish on this stock with 13 analysts rating it as a buy, none rating it as a sell and seven rating it as a hold.

A Look Back: In the third quarter, profit rose 23.9% to $43.7 million (17 cents a share) from $35.3 million (14 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 10.2% to $1.4 billion from $1.27 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 22.6% in the second quarter and 18.3% in the first quarter.

Revenue has risen the past four quarters. Revenue rose 11.8% in the second quarter from the year earlier, climbed 11.6% in the first quarter from the year-ago quarter and 9.4% in the fourth quarter of the last fiscal year.

Stock Price Performance: During November 9, 2011 to February 7, 2012, the stock price had fallen $1.85 (-21%) from $8.80 to $6.95. The stock price saw one of its best stretches over the last year between January 17, 2012 and January 25, 2012 when shares rose for seven-straight days, rising 15.7% (+91 cents) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10-straight days, falling 18.4% (-$1.68) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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Coventry Health Care Reports Fourth Quarter Earnings

Wed, Feb 8, 2012, 9:16 AM EST - U.S. Markets open in 14 mins.

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Tuesday, February 7, 2012

Gentiva® Health Services Reports Fourth Quarter and Full-Year 2011 Results

ATLANTA, Feb. 7, 2012 /PRNewswire/ -- Gentiva Health Services, Inc. (NASDAQ: GTIV - News), the largest provider of home health and hospice services in the United States based on revenue, today reported fourth quarter and full-year 2011 results.

Full-year 2011 financial highlights include:

Total net revenues of $1.8 billion.Adjusted income from continuing operations on a diluted share basis of $1.68, excluding the $0.08 impact from debt refinancing charges incurred in the first quarter of 2011.Adjusted EBITDA of $199 million.

As previously disclosed, the Company undertook a comprehensive review of its branch structure, support infrastructure and other significant spend areas in the third quarter of 2011 in response to the challenging Medicare reimbursement rate environment the Company is facing. As a result of this assessment, the Company closed 34 locations (25 home health and 9 hospice) and sold 9 home health locations in the fourth quarter of 2011. The financial results of the impacted locations were included in the Company's results from continuing operations. Related to the cost savings and branch reduction initiatives, the Company recorded a pre-tax charge of $12.4 million in the fourth quarter of 2011 for severance, lease terminations and other items. Subsequent to year-end, the Company entered into agreements to sell 8 additional home health branches and 2 hospice branches as part of its branch assessment.

Fourth quarter 2011 financial highlights include:

Total net revenues of $449.2 million, a decrease of 2% compared to $456.8 million for the quarter ended December 31, 2010. Net revenues included home health episodic revenues of $217.1 million, a decline of 3% compared to $224.6 million in the 2010 fourth quarter. Hospice revenues were $200.3 million in the fourth quarter of 2011, an increase of 3% compared to $195.2 million in the 2010 fourth quarter. Hospice represented 45% of total net revenues in the fourth quarter of 2011, compared to 43% in the 2010 fourth quarter.
Income from continuing operations attributable to Gentiva shareholders of $3.4 million, or $0.11 per diluted share, compared to $17.9 million, or $0.59 per diluted share, for the fourth quarter of 2010.
Adjusted income from continuing operations attributable to Gentiva shareholders of $11.3 million, compared with $20.9 million in the comparable 2010 period. On a diluted per share basis, adjusted income from continuing operations attributable to Gentiva shareholders was $0.37 for the fourth quarter of 2011 compared to income of $0.69 for the fourth quarter of 2010.
Adjusted earnings before interest, taxes, depreciation and amortization attributable to continuing operations (Adjusted EBITDA) decreased 26% to $47.1 million in the fourth quarter of 2011 as compared to $63.9 million in the fourth quarter of 2010. Adjusted EBITDA as a percentage of net revenues was 10.5% in the fourth quarter of 2011 versus 14.0% in the prior-year period.

Adjusted income from continuing operations attributable to Gentiva shareholders and Adjusted EBITDA for the fourth quarter of 2011 exclude special items relating to i) pre-tax charges for cost savings initiatives of $12.4 million, or $0.24 per diluted share, ii) pre-tax charges for restructuring, legal settlements and acquisition and integration costs of $1.9 million, or $0.03 per diluted share, iii) incremental tax expense on goodwill, intangibles and other long-lived asset impairment of $0.6 million, or $0.02 per diluted share, iv) tax adjustment charge to gain on sale of CareCentrix included in the net earnings of CareCentrix of $1.2 million, or $0.04 per diluted share, v) pre-tax gain on sale of assets of $1.1 million, or $0.02 per diluted share, and vi) tax benefit on legal settlements of $1.7 million, or $0.05 per diluted share. The fourth quarter of 2010 included pre-tax charges for legal settlement, restructuring, and acquisition and integration costs of $5.3 million, or $0.10 per diluted share. See table that follows.

Full-year 2011 financial highlights include:

Total net revenues of $1.80 billion, an increase of 27% compared to $1.41 billion for the prior year period. Net revenues included home health episodic revenues of $876.9 million, a decline of 4%, compared to $909.1 million in the comparable 2010 period. Hospice revenues were $786.2 million, compared to $351.5 million in the prior year period.
Loss from continuing operations attributable to Gentiva shareholders of $458.8 million, or $15.13 per diluted share, as compared to income from continuing operations of $55.3 million, or $1.81 per diluted share, for the 2010 period.
Adjusted income from continuing operations attributable to Gentiva shareholders of $49.2 million, compared with $83.6 million in the 2010 period. On a diluted per share basis, adjusted income from continuing operations attributable to Gentiva shareholders was $1.60 for 2011 as compared with $2.74 in the corresponding period of 2010. Excluding the approximately $3.8 million write-off of prepaid financing fees and the costs of terminating the Company's interest rate swap contract associated with the Company's debt refinancing in the first quarter of 2011, adjusted income from continuing operations attributable to Gentiva shareholders was $1.68 on a diluted per share basis.
Adjusted earnings before interest, taxes, depreciation and amortization attributable to continuing operations (Adjusted EBITDA) increased 2% to $199.2 million as compared to $196.0 million in the 2010 period. Adjusted EBITDA as a percentage of net revenues was 11.1% versus 13.9% in the prior-year period.

Adjusted income from continuing operations attributable to Gentiva shareholders and Adjusted EBITDA for the full year 2011 exclude special items relating to i) pre-tax charges for cost savings initiatives of $13.2 million, or $0.26 per diluted share, ii) pre-tax charges for restructuring, legal settlements and acquisition and integration costs of $35.9 million, or $0.72 per diluted share, iii) pre-tax charges for goodwill, intangibles and other long-lived asset impairment of $643.3 million, or $18.06 per diluted share, iv) gain on sale of CareCentrix included in the net earnings of CareCentrix of $67.1 million, or $2.21 per diluted share, v) pre-tax gain on sale of assets of $1.1 million, or $0.02 per diluted share, and vi) dividend income of $8.6 million, or $0.18 per diluted share. The full year 2010 period included pre-tax legal settlement, restructuring, and acquisition and integration costs of $46.0 million, or $0.93 per diluted share. See table that follows.

For the fourth quarter of 2011, the Company reported net income attributable to Gentiva shareholders of $4.6 million, or $0.15 per diluted share, compared to net income of $15.8 million, or $0.52 per diluted share, in the fourth quarter of 2010. For the full-year 2011, net loss attributable to Gentiva shareholders was $450.5 million, or $14.85 per diluted share, versus net income of $52.2 million, or $1.71 per diluted share, for the full-year 2010. These results included special items discussed above as well as the results from discontinued operations.

Financial Covenants

Given the amount of potential fourth quarter charges related to the cost savings initiatives, on November 28, 2011, the Company entered into an amendment to its senior secured credit agreement to increase its fourth quarter financial covenant flexibility. The amendment modified the definition of Consolidated EBITDA in the fourth quarter of 2011 to provide for the add-back of the full costs associated with the Company's cost realignment and operating losses associated with branches scheduled to be closed or sold during the fourth quarter of 2011. Additionally, the amendment permitted the Company to maintain its consolidated leverage ratio at or less than 4.75 to 1.00 through December 31, 2011. As of December 31, 2011, the Company's consolidated leverage ratio was 4.41, below the 4.75 to 1.00 maximum permitted. On a net basis, excluding total cash and equivalents, the consolidated leverage ratio was 3.67 as of December 31, 2011.

Based on the impact of the Medicare reimbursement rate decreases and the reduction in its maximum allowed consolidated leverage ratio during 2012, the Company will likely be out of compliance with its financial covenant ratios in 2012. The Company is currently in discussions with its lead bank on an amendment to provide covenant flexibility to its credit agreement.

Cash Flow and Balance Sheet Highlights

At December 31, 2011, the Company reported cash and cash equivalents of $164.9 million and outstanding debt of $988.1 million. During the fourth quarter of 2011, the Company paid down $20 million on its term loans. Since closing the Odyssey transaction, the Company has repaid $116.9 million on its revolving credit facility and term loans. Total Company days sales outstanding, or DSO's, was 57 days at December 31, 2011, compared to 50 days at September 30, 2011.

Cash flow was impacted in the fourth quarter by tax payments on asset sales completed in the third quarter of 2011 and cash severance and lease termination payments associated with the Company's cost savings initiatives. For the fourth quarter of 2011, net cash provided by operating activities was a negative $9.2 million, compared to $51.0 million in the prior year period for 2010. Free cash flow was a negative $13.9 million for the fourth quarter of 2011, compared to $44.1 million in 2010. Free cash flow is calculated as net cash provided by operating activities less capital expenditures.

Full-Year 2012 Outlook

On January 10, 2012, the Company provided 2012 net revenue and Adjusted EBITDA guidance to facilitate discussions with its bank group regarding an amendment to its credit agreement. For 2012, Gentiva expects full-year net revenues to be in the range of $1.70 billion to $1.76 billion and Adjusted EBITDA to be $170 million to $190 million. Adjusted EBITDA excludes charges related to cost savings initiatives, restructuring, acquisition, integration activities, the cost of legal settlements, goodwill, intangible asset and other long-lived asset impairment and dividend income.

The Company intends to provide its 2012 outlook for adjusted income from continuing operations attributable to Gentiva shareholders once it completes the amendment of its credit agreement.

Non-GAAP Financial Measures

The information provided in this press release includes certain non-GAAP financial measures as defined under Securities and Exchange Commission (SEC) rules. In accordance with SEC rules, the Company has provided, in the supplemental information and the footnotes to the tables, a reconciliation of those historical measures to the most directly comparable GAAP measures.

A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure, is not accessible on a forward-looking basis without unreasonable effort due to the inherent difficulties in predicting the costs of restructuring, legal settlements and merger and acquisition activities, the results of discontinued operations and the impact of any future acquisitions or divestitures, which can fluctuate significantly and may have a significant impact on net income.

Conference Call and Webcast Details

The Company will comment further on its fourth quarter and full-year 2011 results during its conference call and live webcast to be held Tuesday, February 7, 2012 at 9:00 a.m. Eastern Time. To participate in the call from the United States, Canada or an international location, dial (973) 935-2408 and reference call #46346894. The webcast is an audio-only, one-way event. Webcast listeners who wish to ask questions must participate in the conference call. Log onto http://investors.gentiva.com/events.cfm to hear the webcast. A replay of the call will be available on February 7 and will remain available continuously through February 14. To listen to a replay of the call from the United States, Canada or international locations dial (800) 585-8367 or (404) 537-3406 and enter the following PIN at the prompt: 46346894. Visit http://investors.gentiva.com/events.cfm to access the webcast archive. This press release is accessible at http://investors.gentiva.com/releases.cfm and a transcript of the conference call will be posted on the Company's website.

About Gentiva Health Services, Inc.

Gentiva Health Services, Inc. is the nation's largest provider of home health and hospice services based on revenue, delivering innovative, high quality care to patients across the United States. Gentiva is a single source for skilled nursing; physical, occupational, speech and neurorehabilitation services; hospice services; social work; nutrition; disease management education; help with daily living activities; and other therapies and services. In August 2010, Gentiva acquired Odyssey HealthCare, Inc., one of the largest providers of hospice care in the United States. GTIV-E

(unaudited tables and notes follow)

Gentiva Health Services, Inc. and Subsidiaries

Condensed Consolidated Financial Statements and Supplemental Information

(in 000's, except per share data)

Selling, general and administrative expenses

Goodwill, intangibles and other long-lived asset impairment

Income (loss) from continuing operations before income taxes and equity in net earnings of CareCentrix

Equity in net earnings of CareCentrix, including gain on sale

Income (loss) from continuing operations

Discontinued operations, net of tax

Less: Net income attributable to noncontrolling interests

Net income (loss) attributable to Gentiva shareholders

Income (loss) from continuing operations attributable to Gentiva shareholders

Discontinued operations, net of tax

Net income (loss) attributable to Gentiva shareholders

Weighted average shares outstanding

Income (loss) from continuing operations attributable to Gentiva shareholders

Discontinued operations, net of tax

Net income (loss) attributable to Gentiva shareholders

Weighted average shares outstanding

Amounts attributable to Gentiva shareholders:

Income (loss) from continuing operations

Discontinued operations, net of tax

Prepaid expenses and other current assets

Note receivable from CareCentrix

Current portion of long-term debt

Obligations under insurance programs

(A) Accounts receivable, net included an allowance for doubtful accounts of $11.6 million and $7.7 million at December 31, 2011 and December 31, 2010, respectively.

Condensed Statements of Cash Flows

Adjustments to reconcile net (loss) income to net cash

provided by operating activities:

Amortization and write-off of debt issuance costs

Provision for doubtful accounts

Equity-based compensation expense

Windfall tax benefits associated with equity-based compensation

Goodwill, intangibles and other long-lived asset impairment

(Gain) loss on sale of assets and businesses

Equity in net earnings of CareCentrix, including gain on sale, net of tax

Changes in assets and liabilities, net of effects from acquisitions and dispositions:

Prepaid expenses and other current assets

Net cash provided by operating activities

Proceeds from sale of assets and businesses

Acquisition of businesses, net of cash acquired

Net cash provided by (used in) investing activities

Proceeds from issuance of common stock

Windfall tax benefits associated with equity-based compensation

Proceeds from issuance of debt

Borrowings under revolving credit facility

Repayment of borrowings under revolving credit facility

Repayment of Odyssey long-term debt

Repayment of capital lease obligations

Net cash (used in) provided by financing activities

Net change in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

A reconciliation of Free cash flow to Net cash provided by operating activities follows:

Net cash provided by operating activities

Less: Purchase of fixed assets

Corporate administrative expenses

Goodwill, intangibles and other long-lived asset impairment (7)

Interest expense and other, net (6)

Income (loss) from continuing operations before income taxes and equity in net earnings of CareCentrix

Home Health operating contribution margin %

Hospice operating contribution margin %

Net Revenues by Major Payer Source:

Commercial insurance and other:

Total commercial insurance and other

A reconciliation of Adjusted EBITDA to Net income (loss) attributable to Gentiva shareholders follows:

Goodwill, intangibles and other long-lived asset impairment (7)

Restructuring, legal settlement and acquisition and integration costs (5)

Interest expense and other, net (6)

Income (loss) from continuing operations before income taxes and equity in net earnings of CareCentrix

Income tax (expense) benefit (9)

Equity in net earnings of CareCentrix, including gain on sale, net of tax

Income (loss) from continuing operations

Discontinued operations, net of tax (4)

Less: Net income attributable to noncontrolling interests

Net income (loss) attributable to Gentiva shareholders

A reconciliation of Adjusted income from continuing operations attributable to Gentiva shareholders to Income (loss) from continuing operations follows: (3)

Adjusted income from continuing operations attributable to Gentiva shareholders

Goodwill, intangibles and other long-lived asset impairment, net of tax (7)

Gain on sale of CareCentrix included in equity in net earnings of CareCentrix, net of tax

Restructuring, legal settlement and acquisition and integration costs (5)

Fin-48 Reserve on OIG legal settlement

Income (loss) from continuing operations attributable to Gentiva shareholders

Add back: Net income attributable to noncontrolling interests

Income (loss) from continuing operations

Adjusted income from continuing operations attributable to Gentiva shareholders per diluted share

Goodwill, intangibles and other long-lived asset impairment, net of tax (7)

Gain on sale of CareCentrix included in equity in net earnings of CareCentrix, net of tax

Restructuring, legal settlement and acquisition and integration costs (5)

Fin-48 Reserve on OIG legal settlement

Impact of exclusion of dilutive shares due to the anti-dilutive effect of the shares

Income (loss) from continuing operations attributable to Gentiva shareholders per diluted share

Add back: Net income attributable to noncontrolling interests

Income (loss) from continuing operations per diluted share

Length of stay at discharge (in days)

Notes:

1. The comparability between reporting periods has been affected by the following items:

a. Effective August 17, 2010, the Company completed the acquisition of 100 percent of the equity interest of Odyssey HealthCare, Inc. ("Odyssey"), one of the largest providers of hospice care in the United States, operating approximately 100 Medicare-certified providers serving terminally ill patients and their families in 30 states. In connection with the acquisition, the Company entered into a new $875 million Credit Agreement and issued $325 million of senior unsecured notes.

b. The fourth quarter and fiscal year 2011 included 92 and 365 days of activity, respectively, as compared to 89 and 362 days for the fourth quarter and fiscal year 2010. This difference stems from the Company's adopting a change to a calendar quarter reporting period in 2011 from its prior 13 week reporting periods in 2010.

2. The Company's senior management evaluates performance and allocates resources based on operating contributions of the operating segments, which exclude corporate expenses, depreciation, amortization, and interest expense and other (net), but include revenues and all other costs directly attributable to the specific segment.

3. Adjusted EBITDA, a non-GAAP financial measure, is defined as income from continuing operations before interest expense and other (net of interest income), income taxes, depreciation and amortization and excluding charges relating primarily to cost savings initiatives, restructuring, legal settlements and acquisition and integration activities, dividend income and gain on sale of assets, net of taxes, and goodwill, intangibles and other long-lived asset impairment. Management uses Adjusted EBITDA to evaluate overall performance and compare current operating results with other companies in the healthcare industry. Adjusted EBITDA should not be considered in isolation or as a substitute for income from continuing operations, net income, operating income or cash flow statement data determined in accordance with accounting principles generally accepted in the United States. Because Adjusted EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States and is susceptible to varying calculations, it may not be comparable to similarly titled measures in other companies. Adjusted EBITDA presented in the Supplemental Information relates to the Company's continuing operations.

Adjusted income from continuing operations attributable to Gentiva shareholders is defined as income from continuing operations attributable to Gentiva shareholders, excluding tax reserves relating to the OIG settlement, charges relating to cost savings initiatives, restructuring, legal settlements and acquisition and integration activities, dividend income and gain on sale of assets, net of taxes, goodwill, intangibles and other long-lived asset impairment.

4. During the fourth quarter of 2011, the Company sold 9 home health branches and other assets for cash proceeds of approximately $1.9 million.

On October 14, 2011, the Company completed the sale of its homemaker services business in Illinois ("IDOA") pursuant to an asset purchase agreement. Total consideration of approximately $2.4 million consisted of (i) cash proceeds of approximately $2.0 million and (ii) an escrow of $0.4 million to generally satisfy certain post closing obligations.

On September 10, 2011, the Company completed the sale of its Rehab Without Walls® business pursuant to an asset purchase agreement. Total consideration of approximately $9.8 million consisted of (i) cash proceeds of approximately $9.2 million and (ii) an escrow of $0.6 million to generally satisfy certain post closing obligations.

On February 1, 2010, the Company consummated the sale of its respiratory therapy and home medical equipment ("HME") and infusion therapy ("IV") businesses pursuant to an asset purchase agreement.

The financial results of Rehab Without Walls, IDOA and the Company's HME and IV businesses are reported as discontinued operations in the accompanying 2011 and 2010 condensed consolidated financial statements. Net revenues, operating results and the gain on sale of business associated with these operating units for the fourth quarter and fiscal years 2011 and 2010 were as follows (dollars in thousands):

Operating (loss) income before income taxes

Gain (loss) on sale of business

Discontinued operations, net of tax

5. Operating contribution and EBITDA included charges relating to cost savings initiatives, restructuring, legal settlements and acquisition and integration activities of $14.3 million and $49.1 million for the fourth quarter and full year 2011, respectively, as compared to $5.3 million and $46.0 million for the corresponding periods of 2010.

For the fourth quarter and full year 2011, the Company recorded (i) charges for cost savings initiatives of $12.4 million and $13.2 million, respectively, (ii) restructuring costs of $0.3 million and $2.0 million, respectively, (iii) legal settlement reserves of $1.0 million and $26.0 million, respectively, associated with a government investigation assumed in the Odyssey acquisition, and (iv) acquisition and integration costs of $0.6 million and $7.9 million, respectively, primarily relating to the acquisition of Odyssey HealthCare, Inc.

For the fourth quarter of 2010, the Company recorded (i) restructuring costs of $2.7 million and (ii) acquisition and integration costs of $2.6 million, primarily relating to the acquisition of Odyssey HealthCare, Inc.

The charges for the full year 2010 included (i) settlement costs and legal fees of $4.2 million related to a three-year old commercial contractual dispute involving the Company's former subsidiary, CareCentrix, (ii) incremental charges of $9.5 million in connection with an agreement in principle, subject to final approvals, between the Company and the Department of Health and Human Services, Office of the Inspector General to resolve the matters which were subject to a 2003 OIG subpoena relating to the Company's cost reports for the 1998 to 2000 periods, (iii) restructuring costs of $6.3 million and (iv) acquisition and integration costs of $26.0 million.

These charges were reflected as follows for segment reporting purposes (dollars in millions):

6. Interest expense and other, net for fiscal 2011 included charges of approximately $3.8 million relating to the write-off of deferred debt issuance costs and costs of terminating the Company's interest rate swaps in connection with the refinancing of the indebtedness outstanding under its senior secured credit agreement.

7. During the third quarter of 2011, the Company performed an impairment test of its goodwill, intangibles and other long-lived assets in response to changes in our business climate, uncertainties around Medicare reimbursement as the federal government works to reduce the federal deficit as well as a significant decline in the price of the Company's common stock during the quarter. The Company's impairment test indicated that goodwill and certain identifiable intangibles assets had carrying values that exceed the estimated fair values of those assets. In addition, the Company finalized its review of alternatives to replacing various field operating systems. As such, the Company recorded non-cash impairment charges of approximately $643.3 million for 2011.

8. Dividend income for fiscal 2011 represents a 12% cumulative preferred dividend received in connection with the sale of the Company's preferred investment in CareCentrix in 2011.

9. The Company's effective tax rate relating to its continuing operations was a tax provision of 40.5% and 39.7% for the fourth quarter and full year 2011, respectively, as compared to a tax provision of 32.2% and 38.5% for the fourth quarter and full year 2010, respectively.

During year 2010, the Company recorded certain non-deductible transaction costs related to the Odyssey acquisition and changes in Odyssey tax reserves subsequent to the acquisition closing date. In addition, the Company recorded additional capital loss and valuation allowance associated with a CareCentrix legal settlement. Excluding the impact of these items, the Company's effective tax rate relating to its continuing operations for the fourth quarter and full year 2010 would have been 32.6% and 38.9%, respectively.

Forward-Looking Statement

Certain statements contained in this news release, including, without limitation, statements containing the words "believes," "anticipates," "intends," "expects," "assumes," "trends" and similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon the Company's current plans, expectations and projections about future events. However, such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, among others, the following: economic and business conditions, including the ability to access capital markets; demographic changes; changes in, or failure to comply with, existing governmental regulations; the impact on our Company of recently passed healthcare reform legislation and its subsequent implementation through governmental regulations; changes in Medicare, Medicaid and commercial payer reimbursement levels; the outcome of any inquiries into the Company's operations and business practices by governmental authorities; the Company's ability to effectively integrate Odyssey's operations; effects of competition in the markets in which the Company operates; liability and other claims asserted against the Company; ability to attract and retain qualified personnel; availability and terms of capital; loss of significant contracts or reduction in revenues associated with major payer sources; ability of customers to pay for services; business disruption due to natural disasters, pandemic outbreaks, or terrorist acts; ability to successfully integrate the operations of acquisitions the Company may make and achieve expected synergies and operational efficiencies within expected time-frames; ability to maintain compliance with its financial covenants under the Company's credit agreement; effect on liquidity of the Company's debt service requirements; and changes in estimates and judgments associated with critical accounting policies and estimates. For a detailed discussion of certain of these and other factors that could cause actual results to differ from those contained in this news release, please refer to the Company's various filings with the Securities and Exchange Commission, including the "Risk Factors" section contained in the Company's annual report on Form 10-K for the year ended December 31, 2010 and the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2011.

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Thursday, January 26, 2012

Health Care REIT, Inc. Declares Fourth Quarter Dividend

Thu, Jan 26, 2012, 5:49 PM EST - U.S. Markets closed

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Thursday, January 19, 2012

Magellan Health Services Announces Fourth Quarter 2011 Earnings Conference Call

AVON, Conn.--(BUSINESS WIRE)-- Magellan Health Services, Inc. (NASDAQ:MGLN - News) today announced that it will release fourth quarter earnings results on Tuesday, February 28, 2012. Management will discuss the Company’s financial results, as well as its business strategy and outlook in a conference call to be held the same day from 10:00 to 11:00 a.m. Eastern time.

The press release detailing the Company’s fourth quarter 2011 earnings results will be issued at approximately 6:30 a.m. Eastern, and will be immediately available on the investor relations page at www.MagellanHealth.com.

To participate in the conference call, interested parties should call 1-888-566-8408 and reference the passcode Fourth Quarter 2011 Earnings Call approximately 15 minutes before the start of the call. The conference call also will be available via live webcast at Magellan's investor relations page at www.MagellanHealth.com.

A taped replay of the conference call will be available for one week following the call. Interested parties should call 1-866-414-6080 or 1-203-369-0679 (from outside the U.S.) to listen.

Those who plan to access the call or webcast are encouraged to read Magellan's Annual Report on Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission (SEC) on February 25, 2011, and in subsequent Quarterly Reports on Form 10-Q, filed with the SEC during 2011 for material information regarding Magellan's operational and financial results, including the section entitled “Risk Factors.”

About Magellan: Headquartered in Avon, Conn., Magellan Health Services Inc. is a leading specialty health care management organization with expertise in managing behavioral health, radiology and specialty pharmaceuticals, as well as public sector pharmacy benefits programs. Magellan delivers innovative solutions to improve quality outcomes and optimize the cost of care for those we serve. Magellan’s customers include health plans, employers and government agencies, serving approximately 31.2 million members in our behavioral health business, 16.3 million members in our radiology benefits management segment, and 5.5 million members in our medical pharmacy management product. In addition, the specialty pharmaceutical segment serves 41 health plans and several pharmaceutical manufacturers and state Medicaid programs. The company’s Medicaid Administration segment serves 25 states and the District of Columbia. For more information, visit www.MagellanHealth.com.

Cautionary Statement: Certain of the statements to be made in the Company’s earnings announcement and conference call may constitute forward-looking statements contemplated under the Securities Exchange Act of 1934 and the Securities Act of 1933, as amended, which involve a number of risks and uncertainties. Any such forward-looking statements are based on management’s analysis, judgment, belief and expectations as of the date of such statements and are subject to known and unknown uncertainties and risks which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Any such forward-looking statements are qualified in their entirety by the more complete discussion of risks set forth in the section entitled “Risk Factors” in Magellan’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, filed with the Securities and Exchange Commission. Magellan undertakes no obligation to publicly revise such forward-looking statements to reflect events or circumstances that arise after the date of such statements.

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Magellan Health Services Announces Fourth Quarter 2011 Earnings Conference Call

A taped replay of the conference call will be available for one week following the call. Interested parties should call 1-866-414-6080 or 1-203-369-0679 (from outside the U.S.) to listen.

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Wednesday, January 18, 2012

Magellan Health Services Announces Fourth Quarter 2011 Earnings Conference Call

A taped replay of the conference call will be available for one week following the call. Interested parties should call 1-866-414-6080 or 1-203-369-0679 (from outside the U.S.) to listen.

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Monday, January 16, 2012

Health Management Associates, Inc. Announces Fourth Quarter and Year-End 2011 Earnings Conference Call and Webcast

NAPLES, Fla.--(BUSINESS WIRE)-- Health Management Associates, Inc. (NYSE:HMA - News) announced today that on February 13, 2012 it will report results for its fourth quarter and year ended December 31, 2011.

Health Management will issue a press release after the market closes on Monday, February 13, 2012. At 11:00 a.m. (ET), the next day, Tuesday, February 14, 2012, management will host a conference call to discuss results in further detail. All interested investors are invited to participate in the conference call.

This conference call will also be simulcast on the Internet. To access the webcast, interested investors should go to the Investor Relations section of Health Management’s website located at www.hma.com or to www.streetevents.com. A replay of the conference call will be available on HMA’s website.

Health Management enables America's best local health care by providing the people, processes, capital and expertise necessary for its hospital and physician partners to fulfill their local missions of delivering superior health care services. Health Management, through its subsidiaries, operates 66 hospitals, with approximately 10,400 licensed beds, in non-urban communities located throughout the United States.

All references to "Health Management" and the “Company” used in this release refer to Health Management Associates, Inc. and its affiliates.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "plans," "could" and other similar words. All statements addressing operating performance, events or developments that Health Management Associates, Inc. expects or anticipates will occur in the future, including but not limited to incurrence of indebtedness, projections of revenue, income or loss, capital expenditures, earnings per share, debt structure, bad debt expense, capital structure, repayment of indebtedness, other financial items and operating statistics, statements regarding the plans and objectives of management for future operations, innovations, or market service development, statements regarding acquisitions, joint ventures, divestitures and other proposed or contemplated transactions (including but not limited to statements regarding the potential for future acquisitions and perceived benefits of acquisitions), statements of future economic performance, statements regarding the effects and/or interpretations of recently enacted or future health care laws and regulations, statements of the assumptions underlying or relating to any of the foregoing statements, and other statements which are other than statements of historical fact, are considered to be "forward-looking statements."

Because they are forward-looking, such statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Health Management Associates, Inc.'s most recent Annual Report on Form 10-K, and its most recent Quarterly Report on Form 10-Q, under the headings entitled "Risk Factors." Should one or more of these risks or uncertainties materialize, or should any of Health Management Associates, Inc.'s underlying assumptions prove incorrect, actual results could vary materially from those currently anticipated. In addition, undue reliance should not be placed on Health Management Associates, Inc.'s forward-looking statements. Except as required by law, Health Management Associates, Inc. disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.Inc. disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.

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