HMA Board Approves $7.6B CHS Acquisition
"We believe in the compelling strategic rationale driving the transaction and believe CHS is acquiring high quality assets whose fundamental performance will be significantly enhanced through the combined efforts of HMA and CHS leaders," Glenview said in prepared remarks. "CHS is well positioned to apply its best practices in core operational areas like physician relationships and recruiting, vendor contracting and clinical management to further stabilize and improve HMA's quality, service delivery and financial performance."
Under terms detailed by the two companies, HMA will be acquired by CHS for approximately $7.6 billion, including outstanding debt. CHS will acquire each issued and outstanding share of the common stock of HMA for $10.50 in cash, 0.06942 of a share of CHS common stock and a Contingent Value Right, which could yield additional cash consideration of up to $1 per share. HMA stockholders will own approximately 16% of the shares of the combined company following close of the transaction, the two companies said in a joint press release.
Franklin, TN-based CHS is already one of the largest publicly-traded hospital companies in the nation and operates 125 mostly general acute-care hospitals in nonurban and mid-size markets in 29 states with approximately 20,000 beds. HMA through affiliates owns and manages 71 hospitals and ambulatory surgery centers in small cities and selected larger urban markets in 15 states with approximately 11,000 licensed beds.
- As Medicare Advantage Cuts Loom, Disagreement Over Program's Stability
- Surgical Checklists Unused in 10% of Hospitals, CMS Data Shows
- Doctors Feel Pressure to Accept Risk-based Reimbursement
- A Fresh Look at End-of-Life Care
- Centralizing the Revenue Cycle Protects the Bottom Line
- 3 in 4 Patients Want E-mail Consultations
- Heart Attack Patient Costs Skyrocket Beyond 30 Days
- ACGME Chief Sees 'Huge' Risk of Error in Proposed Assistant Physician Licensure
- 3 Insider Tips on Cutting Costs without Strangling Growth
- CA Fines 8 Hospitals for Medical Errors