792985--2/25/2010--HEALTH_MANAGEMENT_ASSOCIATES

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{regulation, government, change}

{acquisition, growth, future}

{cost, contract, operation}

{condition, economic, financial}

{personnel, key, retain}

{capital, credit, financial}

{cost, regulation, environmental}

{financial, litigation, operation}

{stock, price, share}

{loss, insurance, financial}

{product, market, service}

{system, service, information}

{stock, price, operating}

{debt, indebtedness, cash}

We are subject to extensive government regulation regarding the conduct of our operations. If we fail to comply with any existing or new regulations, we could suffer civil or criminal penalties or be required to make significant changes to our operations. We are subject to anti-kickback and self-referral laws and regulations that provide for criminal and civil penalties if they are violated We cannot predict the effect that health care reform and other changes in government programs may have on our business, financial condition, results of operations or cash flows. Providers in the hospital industry have been the subject of federal and state investigations and we could become subject to such investigations or whistleblower lawsuits in the future. We could fail to comply with laws and regulations regarding patient privacy and patient information security that could subject us to civil and criminal penalties. If any of our existing health care facilities lose their accreditation or any of our new facilities fail to receive accreditation, such facilities could become ineligible to receive reimbursement under Medicare or Medicaid. State efforts to regulate the construction or expansion of health care facilities could impair our ability to expand Our operations are subject to occupational health, safety and other similar regulations. We could fail to comply with the federal Emergency Medical Treatment and Active Labor Act, or EMTALA, which could subject us to civil monetary penalties or cause us to be excluded from participation in the Medicare program. Increased state regulation of the rates we charge for our services could adversely affect our results of operations. Continued weak economic conditions and a volatile credit market could adversely impact our business and results of operations. Growth in the number of uninsured and underinsured patients or deterioration in the collectibility of the accounts of such patients could adversely affect our results of operations. If government programs or managed care companies reduce the payments we receive as reimbursement for the health care services we provide, our revenue could decline and our business and results of operations could be adversely affected. Controls designed by third parties to reduce inpatient services may reduce our revenue. Our substantial borrowings have, and will continue to have, a significant effect on our business and may affect our ability to secure additional financing when needed. We are the subject of legal proceedings that, if resolved adversely, could have a harmful effect on us. We may incur liabilities not covered by our insurance or which exceed our insurance limits, or a party to our insurance program could become insolvent or otherwise not meet its contractual obligations. Our facilities are heavily concentrated in Florida and Mississippi, which makes us sensitive to regulatory, economic and competitive changes in those states, as well as the harmful effects of hurricanes and other severe weather activity in such states. The failure of certain employers or the closure of certain facilities could have a disproportionate impact on our hospitals and harm our business. Our growth strategy depends, in part, on joint ventures and acquisitions. However, we may not be able to form joint ventures or continue to acquire hospitals that meet our target criteria. We may also have difficulty acquiring hospitals from not-for-profit entities or pursuing certain joint venture activity due to regulatory scrutiny and other restrictions. We may fail to improve or integrate the operations of the hospitals we acquire, which could harm our results of operations. Our receipt of new Medicare and Medicaid provider numbers may be delayed following our acquisition of a hospital. If we acquire hospitals with unknown or contingent liabilities, we could become liable for material obligations. Other hospitals and freestanding outpatient facilities provide services similar to ours, which may raise the level of competition we face and adversely affect our results of operations. Our performance depends on our ability to recruit and retain quality physicians. If we do not continually enhance our hospitals with the most recent technological advances in diagnostic and surgical equipment, our ability to maintain and expand our markets will be adversely affected. Our hospitals face competition for medical support staff, including nurses, pharmacists, medical technicians and other personnel, which may increase our labor costs and adversely affect our business. We depend heavily on key management personnel and the loss of the services of one or more of our key executives or a significant portion of our local hospital management personnel could harm our business. Our business could be harmed by a failure of our proprietary information technology system. If we cannot meet the New York Stock Exchange ( NYSE ) continued listing requirements, the NYSE may delist our common stock. Fluctuations in our operating results and other factors may result in decreases in the price of our common stock.

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792985--2/25/2010--HEALTH_MANAGEMENT_ASSOCIATES_INC