A $7.6 billion deal that would create the nation's largest for-profit hospital company moved closer to completion when the board of directors at Health Management Associates, Inc. announced Wednesday that it unanimously endorsed the sale of the Naples, FL-based hospital chain to Community Health Systems, Inc.
"After conducting an extensive review in conjunction with our legal and financial advisors, we are confident that this transaction provides maximum value to HMA stockholders and represents the best path forward for the Company," HMA Board Chairman Steve Shulman said in prepared remarks.
"HMA and Community Health Systems are stronger together. The combined entity will be better positioned to address healthcare trends and challenges. In addition, the combined organization will have a greater local and regional market depth, expanded physician relations and physician footprint, and solid clinical operations infrastructure. The transaction remains on track to close during the first quarter of 2014, as scheduled, and we appreciate the patience of all our stakeholders as the board conducted its review."
The deal, expected to be finalized in the first quarter of 2014, cleared a key sticking point when Glenview Capital Management, which owns 14.5% of HMA stock gave its approval.