San Diego, Jan. 11, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in shares of Health Management Associates, Inc. (NYSE:HMA) over potential securities laws violations by certain officers and directors at Health Management Associates was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Health Management Associates, Inc. (NYSE:HMA) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements Health Management Associates business, its prospects and its operations were potentially materially false and misleading at the time they were made.

Health Management Associates, Inc. reported that its annual Revenue rose from $4.18billion for 2007 to $5.11billion in 2010 and its Net Income increased over the same time periods from $117.51million in 07 to $150.07million in 2010. Health Management Associates reported that its third quarter Revenue in 2011 increased from $1.25billion in 2010 to $1.4billion and its third quarter Net Income rose from $35.29million to $43.73million in 2011.

Shares of Health Management Associates, Inc. (Public, NYSE:HMA) surged from as low as $1.05 per share in November 08 to as high as $11.30 per share in May 20, 2011.

Then on January 9, 2012 a media report said that an analyst made comments that a former compliance director at Health Management Associates filed a whistleblower lawsuit against the Company.
The whistleblower lawsuit reportedly claims that he was wrongly terminated after uncovering serious Medicare compliance issues at Health Management Associates facilities. Specifically, the whistleblower alleges that several of Health Management Associates's hospitals had a practice of submitting inflated and 'fraudulent billing' to Medicare through the improper admission of elderly and disabled patients as inpatients even though such patients clearly did not meet Medicare standards for inpatient treatment.

On January 10, 2012, Health Management announced that its Senior Vice President, General Counsel and Secretary of the Company had resigned effective immediately.

NYSE HMA dropped to under $5 per share during January 10, 2012.