Block & Leviton LLP Investigates Possible Securities Law Claims Against Health Management Associates, Inc.

BOSTON, Jan. 12, 2012 /PRNewswire/ -- The lawyers at Block & Leviton LLP, (www.blockesq.com), a Boston-based law firm representing investors nationwide, have commenced an investigation on behalf of investors of Health Management Associates, Inc. ("Health Management" or the "Company") (NYSE: HMA) regarding potential violations of the federal securities laws by the Company and certain of its directors and corporate officers.

The investigation was initiated on Monday, January 9, 2012, when an analyst for CRT Capital Group reported that Health Management's former compliance director Paul Meyer filed a whistleblower lawsuit against the Company.  Meyer's lawsuit claims that he was wrongly terminated after uncovering serious Medicare compliance issues at Health Management facilities.  Specifically, Meyer alleges that several of Health Management'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. 

Shares of Health Management dropped $0.53 per share immediately following the publication of the CRT analyst report, falling from $7.49 per share to $6.96.   Then, on Tuesday, January 10, 2012, Health Management announced that its General Counsel, Timothy Parry, had resigned effective immediately.  On this news, the Company's share price dropped an additional $0.91 per share, to $6.05 per share.   In total, Health Management shares suffered a 2-day loss of $1.44 per share, or nearly 20 percent, on unusually heavy trading volume.

If you have any information relevant to this investigation, or if you purchased or acquired Health Management's securities since February 27, 2009 and have questions about your legal rights or information regarding the investigation, please contact Mark Alan Delaney of Block & Leviton LLP at (617) 398-5650 or email him at [email protected].

Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.

This notice may constitute attorney advertising.

SOURCE Block & Leviton LLP

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