<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transaction period from ____ to ____
Commission File Number 1-11141
---------
HEALTH MANAGEMENT ASSOCIATES, INC.
RETIREMENT SAVINGS PLAN
(Full title of the plan)
HEALTH MANAGEMENT ASSOCIATES, INC.
5811 PELICAN BAY BLVD., SUITE 500
NAPLES, FLORIDA 34108-2710
(Name of issuer of the securities held pursuant to the
plan and address of its principal executive office)
<PAGE>
Audited Financial Statements
and Supplemental Schedules
Health Management Associates, Inc.
Retirement Savings Plan
Years ended December 31, 1998 and 1997
with Report of Independent Auditors
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
Audited Financial Statements and Supplemental Schedules
Years ended December 31, 1998 and 1997
Contents
<TABLE>
<S> <C>
Report of Independent Auditors.............................. 1
Audited Financial Statements
Statements of Net Assets Available for Benefits............. 2
Statements of Changes in Net Assets Available for Benefits.. 3
Notes to Financial Statements............................... 4
Supplemental Schedules
Line 27a - Schedule of Assets Held for Investment Purposes.. 14
Line 27d - Schedule of Reportable Transactions.............. 15
Line 27e - Schedule of Non-Exempt Transactions.............. 16
</TABLE>
<PAGE>
Report of Independent Auditors
The Plan Sponsor
Health Management Associates, Inc.
Retirement Savings Plan
We have audited the accompanying statements of net assets available for benefits
of Health Management Associates, Inc. Retirement Savings Plan, as of December
31, 1998 and 1997, and the related statements of changes in net assets available
for benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 1998 and 1997, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedule of assets
held for investment purposes as of December 31, 1998, schedule of reportable
transactions for the year ended December 31, 1998, and schedule of non-exempt
transactions for the year ended December 31, 1998 are presented for purpose of
additional analysis and are not a required part of the financial statements but
are supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These supplemental schedules are the responsibility of
the Plan's management. The supplemental schedules have been subjected to the
auditing procedures applied in our audits of the financial statements and, in
our opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
ERNST & YOUNG LLP
June 11, 1999
1
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
Statements of Net Assets Available for Benefits
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
---------------------------------
<S> <C> <C>
Assets
Investments, at fair value:
Health Management Associates, Inc.
Common stock $ 63,246,002 $ 45,379,028
Collective trust funds 15,077,010 28,500,221
Mutual funds 31,282,944 1,161,855
---------------------------------
109,605,956 75,041,104
Cash 61,184
Receivables:
Participants' contributions 1,041,704 724,408
Employer's contribution 592,275 505,069
Accrued income 49,365 -
Total receivables 1,683,344 1,229,477
---------------------------------
Net assets available for benefits $ 111,350,484 $ 76,270,581
=================================
</TABLE>
See accompanying notes.
2
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
Statements of Changes in Net Assets Available for Benefits
<TABLE>
<CAPTION>
Year Ended December 31
1998 1997
---------------------------------
<S>
Additions
Investment income: <C> <C>
Net appreciation in fair value of $ 15,295,481 $ 21,434,508
investments
Interest and dividends 2,310,667 206,551
---------------------------------
17,606,148 21,641,059
Contributions:
Participants 13,821,296 9,811,079
Employer 3,604,766 2,383,490
---------------------------------
17,426,062 12,194,569
---------------------------------
Total additions 35,032,210 33,835,628
Deductions
Benefit payments 6,502,207 4,699,482
Administrative expenses - 10,305
---------------------------------
Total deductions 6,502,207 4,709,787
Transfers from related plan 6,549,902 -
---------------------------------
Increase in net assets available for 35,079,905 29,125,841
benefits
Net assets available for benefits at
beginning of year 76,270,581 47,144,740
---------------------------------
Net assets available for benefits at end $ 111,350,486 $ 76,270,581
of year
=================================
</TABLE>
See accompanying notes.
3
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
Notes to Financial Statements
December 31, 1998
1. Description of the Plan
The following description of Health Management Associates, Inc. Retirement
Savings Plan (the "Plan") provides only general information. Participants
should refer to the Plan agreement for a more complete description of the Plan's
provisions.
General
The Plan's sponsor is Health Management Associates, Inc. (the "Company"). The
effective date of the Plan is October 1, 1990 (date of inception). The Plan was
amended and restated in its entirety effective January 1, 1998 and July 1, 1998.
The amendments incorporated the designation of Merrill Lynch Trust Company (the
"trustee") as the trustee of the Plan's investments and the provisions of the
River Oaks Hospital, Inc. 401(k) Profit Sharing Plan which was merged into the
Plan during 1998, respectively.
The Plan is intended to qualify as a salary reduction plan under Section 401(k)
and as a qualified defined contribution plan under Section 401(a) of the
Internal Revenue Code (the "Code"). The Plan is subject to the provisions of
the Employee Retirement Income Security Act of 1974, as amended (ERISA).
All eligible employees of the Company, as defined, may elect to participate in
the Plan, provided that such employee is not a person covered under a collective
bargaining agreement under which retirement benefits have been the subject of
good faith bargaining or are participants in any other qualified plan maintained
by the Company.
Contributions
Each year, participants may elect to defer from 1% to 20% of compensation
received during the plan year. The Company makes discretionary matching
contributions equal to a percentage of each participants' deferred compensation.
In applying such matching percentage, only salary reductions up to 6% of total
compensation shall be considered, and such Company matching contributions are
limited to 3% of the participant's total compensation during the plan year.
4
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
Notes to Finanncial Statements (continued)
1. Description of the Plan (continued)
Contributions (continued)
In addition, the Company, at the sole discretion of its Board of Directors, may
make an additional contribution to the Plan. The Company match is in the form
of Company securities, with the exception of designated hospital subsidiaries
which receive the Company match in cash. The Company match in Company
securities is not subject to participant direction. During the years ended
December 31, 1998 and 1997, discretionary contributions of approximately
$339,000 and $320,000, respectively, were made to the Plan.
Participants' Accounts
Each participant's account is credited with the participant's contribution and
allocations of the Company's contribution and Plan earnings. Allocations are
based on participant earnings or account balances, as defined in the Plan
agreement. The benefit to which a participant is entitled is the benefit that
can be provided from the participant's vested account.
Withdrawals and Payments of Benefits
Upon retirement or death, the total vested value of a participant's account is
distributed to the participant or the beneficiary in cash unless the participant
or the beneficiary elects certain other forms of distribution available under
the Plan.
A participant is only entitled to make a withdrawal from his or her account
prior to separation from service if the participant qualifies for a hardship
withdrawal. If a participant separates from service before vesting, the portion
of the account attributable to Company contributions is not forfeited until the
participant incurs a five-year break in service.
Forfeited balances of terminated participants' nonvested accounts are used to
reduce future Company contributions or pay administrative expense of the Plan.
Forfeitures aggregated $388,000 and $313,000 at December 31, 1998 and 1997,
respectively.
5
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
Vesting
Participants are immediately vested in their voluntary contributions plus actual
earnings thereon. Participants become one hundred percent vested in the
remainder of their accounts upon the occurrence of any of the following events:
(a) The participant dies while still in service as an employee;
(b) The participant becomes totally and permanently disabled while still in
service as an employee; or
(c) The Plan is terminated by the Sponsor.
In other cases, a gradual vesting scale applies, with one hundred percent
vesting occurring upon reaching seven years of vesting service. A plan year
during which an employee works for at least one thousand hours is counted as one
year of vesting service.
2. Summary of Significant Accounting Policies
Investment Valuation
Investments in mutual funds, collective trust funds, and equity securities are
stated at fair value based on quoted prices in an active market. Securities
traded on a national securities exchange are valued at the last reported sales
price on the last business day of the Plan year.
Contributions
Contributions from participants are recorded when payroll deductions are made.
Company contributions accrue to the Plan at the payroll deduction dates. Such
amounts are remitted monthly to the trustee for investment based on the
investment options designated by the Plan's participants.
6
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
Notes to Financial Statements (continued)
2. Summary of Significant Accounting Policies (continued)
Contributions (continued)
Discretionary Company contributions accrue to the Plan when declared and are
remitted prior to the date the Company files its federal income tax return for
the corresponding fiscal year.
Investment Income
Dividend income is recorded on the ex-dividend date. Interest income is
recorded as earned. Purchases and sales of securities are recorded on a trade
date basis.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual
results inevitably will differ from those estimates, and such differences may be
material to the financial statements.
Reclassifications
Certain amounts in the 1997 financial statements have been reclassified to
conform to the 1998 presentation.
Administrative Expenses
Administrative expenses for the Plan are paid directly by the Company, and not
from Plan assets.
Benefit Payments
Benefits are recorded when paid.
7
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
Notes to Financial Statements (continued)
3. Investments
The fair value of individual investments that represent 5% or more of the Plan's
net assets at December 31 are as follows:
<TABLE>
<CAPTION>
1998 1997
--------------------------------
<S> <C> <C>
Health Management Associates, Inc.
Common Stock $63,246,002 $45,379,028
Merrill Lynch Retirement Preservation 14,243,940 -
Trust
Massachusetts Investors Trust 18,769,875 -
Merrill Lynch Capital Fund 6,575,766 -
NationsBank Stable Capital Fund - 10,004,579
Nations Capital Growth Fund - 12,746,195
Nations Balanced Assets Fund - 5,202,763
</TABLE>
8
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
Notes to Financial Statements (continued)
4. Changes in Net Assets available for Benefits with Fund Information
Following are the changes in net assets available for benefits by fund option
for the years ended December 31, 1998 and 1997:
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------------------------------------
NATIONS NATIONS NATIONS
CAPITAL STABLE BALANCED NATIONS STRONG SOGEN
GROWTH CAPITAL ASSETS TREASURY ADVANTAGE INTERNATIONAL
FUND FUND FUND FUND FUND FUND
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets available for benefits
at December 31, 1997 $ 12,779,353 $ 10,183,441 $ 5,326,177 $ 546,686 $ 140,230 $ 385,016
Net appreciation (depreciation)
in fair value of investments - - - - - -
Interest and dividend income - - - - - -
Contributions:
Participants - - - - - -
Employer - - - - - -
Benefit payments - - - - - -
Transfers to (from) prior trustee - - - - - -
and related plan (12,779,353) (10,183,441) (5,326,177) (546,686) (140,230) (385,016)
Interfund transfers - - - - - -
Net assets available for benefits
at December 31, 1998 $ - $ - $ - $ - $ - $ -
=======================================================================================
<CAPTION>
---------------------------------------------
MERRILL
MERRILL LYNCH
SELIGMAN LYNCH RETIREMENT
FRONTIER EQUITY PRESERVATION
FUND INDEX TRUST TRUST
---------------------------------------------
<S> <C> <C> <C>
Net assets available for benefits
at December 31, 1997 $ 680,990 $ - $ -
Net appreciation (depreciation)
in fair value of investments - 81,024 -
Interest and dividend income - 168 718,839
Contributions:
Participants - 440,087 1,851,646
Employer - 730 134,998
Benefit payments - (12,797) (1,152,615)
Transfers to (from) prior trustee -
and related plan (680,990) 117,054 12,057,796
Interfund transfers - 206,804 633,276
--------------------------------------------
Net assets available for benefits
at December 31, 1998 $ - $ 833,070 $ 14,243,940
============================================
</TABLE>
9
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
Notes to Financial Statements (continued)
4. Changes in Net Assets available for Benefits with Fund Information
(continued)
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------------------------------------
Hotchkis & Lord Abbett
Wiley Developing Merrill Lynch Merrill Lynch
Federated Bond International Growth Growth Massachussets Capital
Fund Fund Fund Fund Investors Trust Fund
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets available for
benefits at December 31, 1997 $ - $ - $ - $ - $ - $ -
Net appreciation (depreciation)
in fair value of investments (8,405) (3,749) 83,808 (63,032) 2,036,022 (86,330)
Interest and dividend income 12,016 34,004 771 23,523 1,050,982 390,927
Contributions:
Participants 133,199 355,809 598,452 500,339 2,617,892 1,506,100
Employer - 3,718 6,967 699 79,061 43,672
Benefit payments (2,426) (30,586) (52,256) (8,884) (1,127,247) (314,406)
Transfers to (from) prior
trustee and related plan 867,393 850,563 690,046 1,590,019 14,669,528 5,353,336
Interfund transfers 53,843 (30,777) 227,808 104,443 (556,363) (317,533)
--------------------------------------------------------------------------------------------------
Net assets available for benefits
at December 31, 1998 $ 1,055,620 $ 1,178,982 $ 1,555,596 $ 2,147,107 $ 18,769,875 $ 6,575,766
=================================================================================================
<CAPTION>
Non-Participant Directed
---------------------------------------------------
Health
Management
Associates,
Inc.
Common
Stock Cash Other Total
---------------------------------------------------
<S> <C> <C> <C> <C>
Net assets available for
benefits at December 31, 1997 $46,228,688 $ - $ - $ 76,270,581
Net appreciation (depreciation)
in fair value of investments 13,256,143 - - 15,295,481
Interest and dividend income 30,072 - 49,365 2,310,665
Contributions:
Participants 5,504,050 (3,575) 317,297 13,821,296
Employer 3,248,893 (1,179) 87,207 3,604,766
Benefit payments (3,803,430) 2,440 - (6,502,207)
Transfers to (from) prior
trustee and related plan (849,771) 16,356 1,229,475 6,549,902
Interfund transfers (368,643) 47,142 - -
---------------------------------------------------
Net assets available for
benefits at December 31, 1998 $63,246,002 $61,184 $1,683,344 $111,350,484
===================================================
</TABLE>
10
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
Notes to Financial Statements (continued)
4. Changes in Net Assets available for Benefits with Fund Information
(continued)
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------------------------------
Nations Nations Nations
Capital Stable Balanced Strong SoGen Seligman
Growth Capital Assets Advantage International Frontier
Fund Fund Fund Fund Fund Fund
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets available for benefits
at December 31, 1996 $ 8,762,033 $ 8,488,241 $3,433,365 $ 25,234 $ 95,459 $111,633
Net appreciation (depreciation)
in fair value of investments 2,817,781 552,594 693,709 156 1,636 54,954
Interest and dividend income 14,603 - 134,337 7,088 17,665 -
Contributions:
Participants 2,217,526 1,796,533 1,312,461 66,392 197,541 245,565
Employer 49,758 127,344 34,345 1,154 1,689 1,450
Benefit payments (931,364) (908,770) (300,367) (2,515) (5,086) (8,738)
Administrative expenses (5,215) (2,460) (605) - (15) (75)
Interfund transfers (145,769) 129,959 18,932 42,721 76,127 276,201
-----------------------------------------------------------------------------------------------
Net assets available for benefits
at December 31, 1997 $12,779,353 $10,183,441 $5,326,177 $140,230 $385,016 $680,990
===============================================================================================
<CAPTION>
Non-
Participant
Directed
--------------------------------------------
Health
Management
Associates,
Inc. Nations
Common Treasury
Stock Fund Total
--------------------------------------------
<S> <C> <C> <C>
Net assets available for benefits
at December 31, 1996 $25,620,832 $ 607,943 $47,144,740
Net appreciation (depreciation)
in fair value of investments 17,313,678 - 21,434,508
Interest and dividend income 2,400 30,458 206,551
Contributions:
Participants 3,975,061 - 9,811,079
Employer 2,568,172 (400,422) 2,383,490
Benefit payments (2,542,642) - (4,699,482)
Administrative expenses (1,935) - (10,305)
Interfund transfers (706,878) 308,707 -
--------------------------------------------
Net assets available for benefits
at December 31, 1997 $46,228,688 $ 546,686 $76,270,581
============================================
</TABLE>
11
<PAGE>
Health Management Associates, Inc. Retirement Saving Plan
Notes to Financial Statements (continued)
5. Income Tax Status
The Internal Revenue Service ruled on April 12, 1996 that the Plan is qualified
under Section 401(a) of the Internal Revenue Code (IRC) and, therefore, the
related trust is exempt from tax pursuant to Section 501(a) of the IRC. The
plan has been amended since receiving the determination letter. The Plan is
required to operate in conformity with the IRC to maintain its qualification.
The Plan sponsor has indicated that it will take the necessary steps, if any, to
maintain the Plan's qualified status.
6. Party-in-Interest Transactions
Certain Plan investments are shares of mutual and trust funds managed by the
trustee therefore, such transactions qualify as party-in-interest. The Health
Management Associates, Inc. Common Stock Fund held investments in Company
securities with a fair value of $63,246,002 and $45,379,028 as of December 31,
1998 and 1997, respectively. The Company paid administrative expenses on behalf
of the Plan for the years ended December 31, 1998 and 1997.
7. Reconciliation of Financial Statements to Forms 5500
Differences between the Forms 5500 and the financial statements for the years
ended December 31, 1998 and 1997 relate to contributions receivable which are
recorded on the Plan's financial statements and not included in the Form 5500.
8. Plan Termination
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will receive the vested portion of their account.
12
<PAGE>
Health Management Associates, Inc. Retirement Saving Plan
Notes to Financial Statements (continued)
9. Year 2000 (Unaudited)
The Plan Sponsor has determined that it will be necessary to take certain steps
in order to ensure that the Plan's information systems are prepared to handle
year 2000 dates. The Plan Sponsor has taken the actions necessary to ensure
that its systems and applications will recognize and process the year 2000 date
and beyond. Costs associated with modifying software and equipment are not
estimated to be significant and will be paid by the Plan Sponsor.
The Plan Sponsor has established communications with its third party service
providers to determine that they have developed plans to address their own year
2000 problems as they relate to the Plan's operations. All third party service
providers have indicated that they will be year 2000 compliant during 1999. If
modifications of data processing systems of either the Plan, the Plan Sponsor,
or its service providers are not completed timely, the year 2000 problem could
have a material impact on the operations of the Plan.
13
<PAGE>
Health Management Associates, Inc. Retirement Saving Plan
EIN: 65-0261425
Plan # 001
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(a) (b) (c) (d) (e)
Current
Identify of Issue Description of Investment Cost Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
* Health Management
Associates, Inc. Common Stock $51,491,116 $ 63,246,002
* Merrill Lynch Trust Company. Equity Index Trust 751,858 833,070
* Merrill Lynch Trust Company Retirement Preservation Trust 14,243,940 14,243,940
* Merrill Lynch Trust Company Growth Fund 2,188,011 2,147,107
* Merrill Lynch Trust Company. Capital Fund 6,664,368 6,575,766
Federated Investors Federated Bond Fund 1,064,887 1,055,620
Hotchkis & Wiley International Fund 1,186,817 1,178,982
MFS Investment Management Massachusetts Investors Trust 16,914,128 18,769,875
Lord, Abbett & Co. Developing Growth Fund 1,454,894 1,555,596
-----------------------------
$95,960,019 $109,605,956
=============================
</TABLE>
* Indicates a party-in-interest to the Plan.
14
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
EIN: 65-0261425
Plan # 001
Line 27d Schedule of Reportable Transactions
Year ended December 31, 1998
<TABLE>
<CAPTION>
(c) Purchase (d) Selling (g) Cost of
(a) Identity of Party Involved (b) Description of Asset Price Price Asset
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category (i) - Individual transaction
in excess of 5% of Plan assets.
NationsBank of Georgia, N.A. Stable Capital Fund $ - $10,004,579 $ 8,662,350
NationsBank of Georgia, N.A. Nations Capital Growth Fund - 12,746,195 13,317,840
NationsBank of Georgia, N.A. Nations Balanced Assets Fund - 5,202,763 5,491,469
Category (iii) - Series of
transactions in excess of 5% of Plan
assets.
Health Management Associates, Inc. Common stock 60,992,387 - 60,992,387
Health Management Associates, Inc. Common stock - 10,444,423 9,063,691
Merrill Lynch Trust Company Retirement Preservation Trust 17,665,786 - 17,665,786
Merrill Lynch Trust Company Retirement Preservation Trust - 3,421,846 3,421,846
Merrill Lynch Trust Company Capital Fund 7,717,865 - 7,717,865
Merrill Lynch Trust Company Capital Fund - 1,055,768 1,053,497
Massachusetts Investors Trust Mutual Fund 19,434,716 - 19,434,716
Massachusetts Investors Trust Mutual Fund - 2,700,864 2,520,589
<CAPTION>
(h) Current
Value of Asset
on Date of (i) Net Gain
(a) Identity of Party Involved Transaction or (Loss)
- ---------------------------------------------------------------------------------
<S> <C> <C>
Category (i) - Individual transaction
in excess of 5% of Plan assets.
NationsBank of Georgia, N.A. $10,004,579 $1,342,229
NationsBank of Georgia, N.A. 12,746,195 (571,645)
NationsBank of Georgia, N.A. 5,202,763 (288,706)
Category (iii) - Series of
transactions in excess of 5% of Plan
assets.
Health Management Associates, Inc. 60,992,387 -
Health Management Associates, Inc. 10,444,423 1,380,732
Merrill Lynch Trust Company 17,665,786 -
Merrill Lynch Trust Company 3,421,846 -
Merrill Lynch Trust Company 7,717,865 -
Merrill Lynch Trust Company 1,055,768 2,271
Massachusetts Investors Trust 19,434,716 -
Massachusetts Investors Trust 2,700,864 180,275
</TABLE>
There were no category (ii) or (iv) transactions during the year ended December
31, 1998.
Note: The information to be presented in columns (e) and (f) is not applicable.
15
<PAGE>
Health Management Associates, Inc. Retirement Savings Plan
EIN: 65-0261425
Plan # 001
Line 27e Schedule of Non-Exempt Transactions
Year ended December 31, 1998
<TABLE>
<CAPTION>
(a) (b) (c)
Description of Transactions,
Relationship to Plan, Including Maturity Date, Rate of
Employer, or Other Interest, Collateral, Par, or
Identity of Party Involved Party-in-Interest Maturity Value
----------------------------------------------------------------------------------------
<S> <C> <C>
Health Management Employer/Plan Sponsor Contributions of $38,951
Associates, Inc. and $,459 for the payroll period
ended December 31, 1997 remitted
March 5, 1998 and January 30,
1998, respectively.
Health Management Employer/Plan Sponsor Contributions of $88,942 and
Associates, Inc. $1,391,411 for the payroll
period ended February 28, 1998
remitted March 27, 1998 and
March 25, 1998, respectively.
Health Management Employer/Plan Sponsor Investment earnings of $2,355
Associates, Inc. were allocated to affected
participants.
</TABLE>
Note: The information to be presented in columns (d), (e), (f), (g), (h), (i),
and (j) is not applicable.
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Health Management Associates, Inc., as Administrator, has duly caused this
Annual Report to be signed on its behalf by the undersigned hereunto duly
authorized.
Health Management Associates, Inc.,
AS ADMINISTRATOR OF
Health Management Associates, Inc.
Retirement Savings Plan
DATE: June 25, 1999 By: /s/ Robert E. Farnham
---------------------
Robert E. Farnham
Vice President
Corporate Controller
17
<PAGE>
EXHIBIT 23.1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 33-80433) pertaining to the Health Management Associates, Inc.
Retirement Savings Plan of our report dated June 11, 1999, with respect to the
financial statements and supplemental schedules of the Health Management
Associates, Inc. Retirement Savings Plan included in this Annual Report (Form
11-K) for the year ended December 31, 1998.
ERNST & YOUNG LLP
Atlanta, Georgia
June 25, 1999
18
