Health Management Associates, Inc. announced Tuesday that it will acquire the two-hospital, not-for-profit Wuesthoff Health System in Melbourne and Rockledge, FL for $145 million. The purchase is expected to be completed by Oct. 1.
Wuesthoff Health System includes the 291-bed Wuesthoff Medical Center-Rockledge, and the 115-bed Wuesthoff Medical Center-Melbourne, both of which are located in Brevard County, along the Atlantic Coast of Central Florida.
“For nearly 70 years, the Wuesthoff Health System has served the healthcare needs of Brevard County and its adjoining communities, and Health Management is pleased to have the opportunity to continue that tradition of service as we seek to enable America’s best local health care,” says Gary D. Newsome, president/CEO of HMA. “We look forward to the opportunity to work closely with the Wuesthoff physicians and associates to provide them with the processes, capital and expertise necessary to fulfill their local mission of delivering superior health care to the region.”
Wuesthoff Health System generates approximately $290 million of annual net revenue and is centrally located on Florida’s east coast. Wuesthoff Medical Center—Rockledge and Wuesthoff Medical Center—Melbourne, located less than 40 miles and 20 miles, respectively, from HMA’s Sebastian River Medical Center in Sebastian, will create a network of HMA services for cardiac, neurosurgical and other services, Newsome said.
When the acquisition is completed, HMA and its affiliates will operate 60 hospitals, with approximately 9,000 licensed beds, in non-urban areas throughout the nation.
According to Florida Today, the health system's financial report covering the period from Oct. 1, 2008, to Sept. 1, 2009, showed that the 115-bed hospital opened by Wuesthoff in Melbourne in 2002 has been a financial burden on the company.
The Melbourne hospital had $48.1 million in assets and $66 million in liabilities, and suffered an operating loss of nearly $800,000 for the year, according to the state records.
"Health Management presented us with a solid proposal, and after careful consideration, we believe this is the best option for the residents of Brevard County, because they share our commitment to quality, affordable, and accessible healthcare" said Emil Miller, president/CEO Wuesthoff.
"This transaction will enable our associates, physicians, and volunteers to continue delivering quality care with the resources Health Management has to offer," Miller continued. "We appreciate the compassionate care that our associates have provided our patients and their families throughout the years and feel confident the excellent staff that has been assembled will continue to be an invaluable asset."
The deal marks Naples, FL-based HMA's second affiliation with a not-for-profit hospital or health system in Florida in the last two months. On May 27, the hospital chain paid $21.4 million for a 60% controlling interest in Shands HealthCare and its three money-losing hospitals.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.