Revamped HMA board backs Community Health Systems deal

The reconstituted board of Health Management Associates affirmed the hospital chain's support for a deal to be acquired by Community Health Systems for $3.9 billion.

The statement comes as Naples, Fla.-based HMA reported continued weakness in its financial performance. The company lost $96.6 million on revenue of $1.4 billion in the quarter ended Sept. 30. Same-hospital admissions declined 6.8% compared with the same quarter in 2012. Same-hospital adjusted admissions, which reflect outpatient services, were down 2.9%.

Three months ago, HMA shareholders installed eight new directors, who initiated a review of Community's bid, which is valued at $7.6 billion including the assumption of debt.

“In addition to having confidence in the value of the transaction, we also support the merger's strategic rationale and benefits for HMA's patients, physicians and Associates across the communities we serve," Board Chairman Steve Shulman said in a news release. "The combined organization will have a greater local and regional market depth, expanded physician relations and physician footprint, and solid clinical operations infrastructure."

Franklin, Tenn.-based Community Health Systems also issued a statement expressing confidence in the deal. "We look forward to the HMA stockholder vote on the merger agreement and to working closely with HMA to finalize this transaction," CEO Wayne Smith said.