Health Management Associates, Naples, Fla., said it completed its acquisition of a 60% interest in three rural Florida hospitals owned by Shands HealthCare, Gainesville, Fla., on July 1. HMA paid $21.5 million. The hospitals will be operated as joint ventures, with Shands retaining a 40% ownership stake in each hospital. Governance on each hospital will be split 50-50 between the two systems.
HMA completes deal with Shands
The hospitals had net revenue of $98 million combined for the fiscal year ended June 30, 2009, and lost a collective $3.5 million for fiscal 2009, according to a bond disclosure. For the first nine months of fiscal 2010, the hospitals lost nearly $6 million, according to another bond disclosure. When the deal was announced in May, Shands said it doesn't have the expertise with rural hospitals or the capital to enable the hospitals to thrive. Shands retains full ownership of its large medical centers in Gainesville and Jacksonville, Fla.
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