Community Health Systems is saying it expects to close its acquisition of Health Management Associates on schedule despite additional action on two fronts that could extend the review period for the merger of the two investor-owned hospital systems.
The Franklin, Tenn.-based chain said in a news release that the Federal Trade Commission has requested additional documents related to the deal in what's known as a second request.
Community said it “anticipated” the FTC's action and still expects to complete the deal in the first quarter of 2014. Community and Naples, Fla.-based HMA have overlaps in 15 states, including three—Alabama, Florida and Oklahoma—where they operate hospitals within 20 miles of each other.
Wayne Smith, Community's president and CEO, previously told Modern Healthcare that the chain would consider divestitures to clear up any antitrust concerns, if necessary, but that he didn't expect the overlaps to derail the deal.
CHS also said Wednesday that the Securities and Exchange Commission has declined to review and sign off on its merger prospectus—a key step before HMA can hold a special meeting for stockholders to vote on the $3.9 billion transaction.
Community said the SEC review is expected to occur after HMA's newly installed board of directors issues its opinion on the deal. The board last month tapped new legal and financial advisers to review the offer, and the evaluation is expected to be completed before mid-November.
Community expects the shareholder meeting to take place before year-end, the release added.
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