HMA, Owners Of Wuesthoff Health System, Sold To CHS
By Dr. James Palermo // January 8, 2014
OVERWHELMING HMA STOCKHOLDER SUPPORT FOR MERGER
Shareholders of Health Management Associates (HMA), owners of the Wuesthoff Health System, overwhelmingly approved the previously announced merger agreement, a $3.9 billion deal to sell the hospital chain to Community Health Systems (CHS).
DEAL CREATES LARGEST HOSPITAL CHAIN IN THE NATION
Requiring approval from at least 70% of HMA shareholders, the Franklin, Tenn.-based CHS received support from 98.7% of votes cast, which represented 81.7% of outstanding common shares of Naples, Fla.-based HMA. The deal creates the largest chain by hospital count in the country.
While the transaction still needs regulatory approval—and received a “second request” for more documentation from antitrust regulators—a Community news release said the deal is now expected to close before the end of the month.
In the release, Steve Shulman, Chairman of the Board of HMA, said, “We are gratified that HMA stockholders have approved our merger with Community Health Systems and look forward to taking the steps necessary to complete the transaction.”
Wayne T. Smith, Chairman of the Board, President and Chief Executive Officer of CHS, said, “We are pleased that HMA stockholders have seen the significant strategic value in combining with CHS. We are working now to finalize regulatory approvals, and we expect to complete this transaction quickly so that we can integrate our two companies and deliver on our plans for long-term growth and value creation.”
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
Health Management Associates, Inc., through its affiliates, owns and manages hospitals and ambulatory surgery centers in small cities and selected larger urban markets. HMA currently operates 71 hospitals in 15 states with approximately 11,000 licensed beds, including the Wuesthoff Health System here in Brevard County.