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  "documentTitle": "Health Management Associates (HMA)",
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  "authorName": "Larry Robbins",
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  "presentationDate": "2013-07-01 00:00:00",
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  "notes": "Uses a 'Board is mistaken' framing to directly challenge management's stated incentive philosophy.",
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      "text": "The Board is mistaken",
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      "text": "The Board & Management’s myopic focus on EBITDA growth has failed: over the last 10 years, total shareholder return has increased <1%",
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      "text": "M&A as % of Market Cap vs. Peers, 2010-2013",
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      "text": "HMA Total Growth, 2002-2012",
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      "text": "HMA spent 2.1x the hospital group average from 1/1/2010 to 5/6/2013 on acquisitions (as a percentage of its market cap). Meanwhile, HMA's total shareholder return over that period lags the hospital group by ~39%",
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      "text": "Total Shareholder Returns: 0.5%",
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      "kind": "paragraph",
      "text": "According to a recent HMA proxy, the Board \"believes that Adjusted EBITDA provides a simple and understandable measure of our recurring profitability and it is highly correlated to our stock price performance\"",
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      "kind": "quote",
      "text": "\"believes that Adjusted EBITDA provides a simple and understandable measure of our recurring profitability and it is highly correlated to our stock price performance\" — HMA Proxy",
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      "kind": "source-note",
      "text": "Source: Company data and Morgan Stanley equity research. 1. 2002 and 2012 EBITDA based on company filings and Morgan Stanley equity research. 2. Reflects share price as of 1/2/2003. 3. Adjusted share price for dividend reinvestment, from Bloomberg, as of 12/31/2012. 4. Market cap as of 5/6/2013. Includes announced deals. 5. Hospital group includes HCA, THC, CYH, LPNT, and UHS.",
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      "text": "The Board & Management's myopic focus on EBITDA growth has failed: over the last 10 years, total shareholder return has increased <1%",
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      "text": "Ineffective incentives & strategy have led to near zero shareholder growth in 10 years",
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