Skip to main content

Business Roundup: HMA Finalizes Deal with Bayfront Health

 |  By John Commins  
   February 19, 2013

Naples, FL-based Health Management Associates, Inc. announced that a subsidiary will partner with the 480-bed Bayfront Health System, in St. Petersburg, pending a lease agreement between the partners and the City of St. Petersburg and other regulatory approvals.

"We continue to work closely with Bayfront's senior leaders, Board of Trustees, and the St. Petersburg City Council to modernize the lease agreement and to create a partnership that will serve the needs of the citizens of the St. Petersburg community for generations to come," HMA CEO/President Gary D. Newsome said in a media release.

Under the deal, HMA will acquire an 80% interest in Bayfront Health and bring them into an affiliation with ShandsHealthCare, part of UF&Shands, the University of Florida Academic Health Center. Terms of the transaction have not been disclosed.

However, net proceeds of approximately $150 million will be invested in the new Bayfront HERO (Health, Education and Research Organization) Foundation. This foundation will invest in research and education in partnership with Bayfront Health System, Johns Hopkins/All Children's Healthcare and other healthcare and academic partners. Bayfront HERO will invest in a 20% ownership stake in the partnership, the two providers said in a joint media release.  

When the deal is finalized, HMA subsidiaries will operate 71 hospitals, with 11,000 licensed beds, in non-urban communities in 15 states.

Cardinal Health to Acquire AssuraMed for $2.07B
Dublin, OH-based Cardinal Health on Thursday announced plans to acquire privately held AssuraMed, a direct-to-home provider of medical supplies, for $2.07 billion, or $1.94 billion, net of the present value of tax benefits. The deal, expected to be finalized in early April, will be financed with a combination of $1.3 billion in new senior unsecured notes and the remainder in cash.

"AssuraMed is a natural extension of the Cardinal Health businesses and of our mission to be essential to care," George Barrett, chairman/CEO of Cardinal Health, said in prepared remarks.

"The acquisition of this industry leader allows us to serve the growing number of Americans treated in home settings, particularly those patients recovering from acute episodes and those suffering with chronic diseases.  This is a platform opportunity for Cardinal Health products and services which will be increasingly important as the delivery of care migrates to more cost-effective settings. It has been a central component of our strategy to help enable the healthcare system by serving patients throughout the continuum of care.  This acquisition further aligns us with key trends including demographic shifts and increased consumerism."

With annual sales in calendar year 2012 of $1 billion, which includes the sales of the recently acquired Invacare Supply Group, AssuraMed serves more than 1 million patients nationally with more than 30,000 products.  The company operates through two separate businesses, Independence Medical and Edgepark Medical Supplies.

Mass General, Exeter (NH) Hospital Expand Collaboration
Physicians from Massachusetts General Hospital Cancer Center will be at Exeter Hospital to provide comprehensive medical oncology and hematology services as part of a new and expanded collaborative, the two hospitals announced.

"This expanded relationship with the Mass General Cancer Center builds upon our existing relationship in radiation oncology services and is part of Exeter Hospital's long-standing commitment to provide the Seacoast community with expert physicians and a sophisticated level of care not typically found at a community hospital," Mary Palmer, vice president of Home Care and Cancer Care for Exeter Hospital, said in prepared remarks.

RI Approves L+M Paperwork for Westerly Hospital Acquisition
The Rhode Island Department of Health deemed as complete the Lawrence + Memorial Corp. application to acquire The Westerly Hospital. "This is a significant and welcome step," Bruce D. Cummings, CEO/president of L+M, said in prepared remarks.

"We look forward now to working further with state regulators and with the Special Master to bring this transaction to a quick closing so we can provide stability to The Westerly Hospital and the communities it serves. The Westerly Hospital has provided great care for generations," Cummings continued. "That won't change—nor does our commitment for again making it a strong and viable community hospital."

The three L+M applications were the first to be made under a new process available in Rhode Island which is directed at expediting the regulatory review for a Rhode Island hospital that is financially distressed and is being acquired by another non-profit hospital.  

The Westerly Hospital filed for receivership in December 2011. In August 2012, Rhode Island Superior Court Associate Justice Brian Stern, the judge presiding over the receivership, approved L+M's bid to buy The Westerly Hospital.

Asante (OR) Health Systems Announces 'Positive Step' in Ashland Hospital Deal
Asante Health Systems President/CEO Roy Vinyard has told employees at the Medford, OR-based system that "positive steps" have been taking toward the acquisition of Ashland Community Hospital.

"After several weeks of earnest negotiations, ACH, the ACH Foundation and Asante have agreed upon a letter of intent that outlines terms for an agreement. Though we remain optimistic that ACH will join Asante, I emphasize that this is just a step albeit a very significant one toward that goal," Vinyard wrote in the memo.

Vinyard said the deal requires the approval of the Ashland City Council, which owns Ashland Community Hospital. The council is scheduled to review the proposal at its regular meeting on Feb. 19. Under the proposal, Asante would make $10 million in capital improvements to Ashland Community and would attempt to avoid employee layoffs.

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.

Tagged Under:


Get the latest on healthcare leadership in your inbox.