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CHS completes acquisition of HMA

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All four for-profit hospitals in Central Pa. are now part of Community Health Systems Inc., which announced this morning that it has completed its acquisition of Health Management Associates Inc.

CHS, based in Tennessee, previously owned, leased or operated 135 hospitals in 29 states, including one local facility, Memorial Hospital in York. HMA, based in Florida, operated 71 hospitals in 15 states, including three local facilities: Carlisle Regional Medical Center, Lancaster Regional Medical Center and Heart of Lancaster Regional Medical Center.

Effective today, HMA will cease trading on the New York Stock Exchange. HMA shareholders will receive $10.50 per share in cash plus 0.06942 shares of CHS common stock for each HMA share they own. HMA shareholders will also receive one contingent value right (CVR) for each HMA share they own, which could yield additional cash consideration of up to $1 per share, depending on the outcome of certain matters.

"We are very pleased to complete this important strategic acquisition and welcome our newly affiliated hospitals and their physicians and employees to our organization," Wayne T. Smith, chairman and CEO of CHS, said in a news release. "This transaction provides us with increased scale and broader geographic reach as we work to create strong healthcare networks across the nation. Our larger organization is well positioned to address the changing dynamics in our industry and dedicated to providing quality care for millions of patients and all the communities we serve. We look forward to effectively integrating this acquisition and generating significant value for our shareholders."

Through its affiliates, Community Health Systems now owns, leases or operates 206 hospitals in 29 states. The organization's affiliates employ more than 135,000 people and approximately 27,000 physicians serve on the medical staffs of CHS-affiliated hospitals. CHS's headquarters will remain in the Nashville, Tenn., suburb of Franklin.

CHS trades on the New York Stock Exchange under the symbol CYH.

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