HMA repaying government $31 million

NAPLES — Hospital operator Health Management Associates says it will restate three years' worth of financial statements and is reimbursing the government for $31 million in incentives it improperly received.

HMA, which owns and operates 71 hospitals in 15 states, says it improperly recognized $31 million in state and federal incentives for implementing electronic medical records technology at 11 of its hospitals. On Oct. 30, HMA says it withdrew the 11 undisclosed hospitals from the incentive program and is repaying the federal and state government agencies overseeing the program.

“The company has concluded that, due solely to this matter, its financial statements and related communications for fiscal years 2010, 2011 and 2012, and the fiscal quarters ended March 31, 2013, and June 30, 2013, and its annual 2013 guidance issued on July 30, 2013, should no longer be relied upon,” HMA says in a statement, though it did not provide a date by which its financial statements will be rectified.

HMA noted that it will re-enroll the hospitals in the incentive program and could recoup some of those costs. The incentive program rewards hospitals for converting to electronic medical records.

HMA says the company remains on track to be acquired by Community Health Systems of Tennessee, HMA says in a statement. Both companies expect the deal to be completed in the first quarter.