HMA Board Approves $7.6B CHS Acquisition
"We are excited to combine these two organizations to create a hospital company with more than 200 facilities and leverage our relative strengths and combined scale to better serve our patients, physicians and communities. We are pleased to have the full support of HMA's new board of directors as we move forward to complete this transaction in the first quarter of 2014," Wayne T. Smith, chairman/president/CEO of CHS said in prepared remarks. "This transaction will broaden our footprint into new geographic markets, allow us to form stronger networks and improve access to care, and strengthen our position for greater benefit and success under health care reform."
The HMA board had already approved the deal in July. However, Glenview raised concerns about the competence of senior leadership and the board at HMA and whether or not they had secured the best deal from CHS. Glenview ousted the board and installed a new board in August.
Since then, the new board has met 11 times, conducted 18 committee meetings, and hired independent analysts to conduct a review of the deal. The board also assumed short-term oversight of the company after a period of upheaval that included the departure in July of CEO Gary Newsome.
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