The Federal Trade Commission late last week approved the merger of OrNda HealthCorp and American Healthcare Management, allowing them to form a 34-hospital chain.
The $400 million deal, in which Nashville, Tenn.-based OrNda will be the surviving company, involves a stock swap. Shareholders of King of Prussia, Pa.-based AHM will receive 0.6 shares of OrNda stock for each share they own.
OrNda also is awaiting word from the FTC on its acquisition of Summit Health, Burbank, Calif., in a $275 million cash-and-stock deal. The Summit deal was announced two weeks after OrNda and AHM agreed to merge.
The combination of the three companies will create the nation's fifth-largest hospital chain; it will operate 48 facilities with 7,900 beds and have $1.6 billion in annual revenues.
The merger of the three chains is expected to be completed in mid-February.