Community Health Systems completes purchase of HMA

Franklin-based Community Health Systems has completed its $7.6 billion acquisition of Florida-based Health Management Associates Inc., creating by one measure, the largest for-profit hospital company in the country.Through its affiliates, Community Health Systems now owns, leases or operates 206 hospitals in 29 states. The organization’s affiliates employ more than 135,000 people and about 27,000 physicians serve on the medical staffs of CHS-affiliated hospitals.

CHS is now the largest hospital operator in terms of the number of facilities; Nashville-based HCA remains the largest in terms of annual revenue.

“We are very pleased to complete this important strategic acquisition and welcome our newly affiliated hospitals and their physicians and employees to our organization,” said Wayne Smith, Chairman and CEO of CHS. “This transaction provides us with increased scale and broader geographic reach as we work to create strong health care networks across the nation.”

Under the terms of a deal with the Federal Trade Commission, CHS must still sell two acute care facilities and related outpatient businesses currently owned by subsidiaries of HMA: Riverview Regional Medical Center, a 281-bed hospital in Gadsden, Ala., and Carolina Pines Regional Medical Center, a 116-bed hospital in Hartsville, S.C. CHS does not expect that divesting these hospitals will significantly hurt it financially.

The sale of these facilities must take place sometime within the next six months.

For CHS, this deal represents the most significant expansion since its purchase of Triad Hospitals in 2007, which added more than 50 hospitals to the chain.

Community Health’s stock (NYSE: CYH) was up slightly in early morning trading at $40.25 per share, up 0.37 percent from Friday’s close.

http://www.tennessean.com/article/20140127/BUSINESS/301270054/2265/BUSINESS05