HMA stock hurt by chief counsel's departure

Investors don't like surprises, and they often sell stock first and ask questions later.

That's apparently what happened at Naples-based hospital operator Health Management Associates, which announced the sudden resignation of General Counsel Timothy Parry in a securities filing Jan. 10. In the filing, HMA says Parry had announced his intention to resign five days earlier.

The news of Parry's departure came on the heels of lawsuits relating to erroneous Medicare billing, further alarming investors. HMA's stock fell as much as 30% on the news before reclaiming some lost ground.

HMA recently announced that it expects net revenues will total $5.8 billion for 2011, up 14% from 2010. The company operates 66 hospitals with about 10,400 beds.