HMA Acquisition By CHS Approved By FTC
By Dr. James Palermo // January 24, 2014
DEAL CREATES NATION'S LARGEST HOSPITAL CHAIN
In early January shareholders of Health Management Associates (HMA), owners of the Wuesthoff Health System and Sebastian River Medical Center, overwhelmingly approved the merger agreement, a $3.9 billion deal, to sell the hospital chain to Community Health Systems (CHS). Completion of the transaction was pending regulatory approval from the Federal Trade Commission (FTC).
CHS and HMA announced today that an agreement had been reached with the FTC that paves the way for the acquisition. Under the terms of the agreement, CHS is required to divest two acute care facilities and related outpatient businesses currently owned by subsidiaries of HMA in Alabama and South Carolina. The HMA acquisition is expected to be completed by the end of this month.
The deal creates the largest chain by hospital count in the nation and dramatically increases the number of CHS hospitals in Florida from 2 to 25.
ABOUT COMMUNITY HEALTH SYSTEMS
Located in the Nashville, Tennessee, suburb of Franklin, Community Health Systems, Inc. is a leading operator of general acute care hospitals in non-urban and mid-size markets throughout the country. CHS currently owns, leases or operates 135 hospitals in 29 states that represent an aggregate of approximately 20,000 licensed beds, offering a broad range of inpatient and outpatient medical and surgical services.
ABOUT HOSPITAL MANAGEMENT ASSOCIATES
HMA currently operates 71 hospitals in 15 states with approximately 11,000 licensed beds, including the Wuesthoff Health System here in Brevard County and Sebastian River Medical Center, which serves communities in South Brevard and North Indian River Counties.