FTC OKs Community Health's Proposed Acquisition Of Health Management Associates

(RTTNews) - Community Health Systems, Inc. (CYH) and Health Management Associates, Inc. (HMA) said Wednesday that they have reached an agreement with the Federal Trade Commission which will allow Community Health Systems to complete its acquisition of Health Management Associates.

Under the terms of the agreement, Community Health Systems is required to divest two acute care facilities and related outpatient businesses currently owned by subsidiaries of Health Management Associates: Riverview Regional Medical Center, a 281-bed hospital located in Gadsden, Alabama, and Carolina Pines Regional Medical Center, a 116-bed hospital in Hartsville, South Carolina.

Community Health Systems said it does not expect the divestitures to have a meaningful impact on the combined company's financial operations or cost-savings.

The completion of the acquisition is not contingent on the immediate divestiture of those facilities, but the divestitures are required to be completed no later than six months after the FTC's order is issued.

Approval for acquisition has also been received from the West Virginia Health Care Authority with respect to Health Management Associates' facility in Williamson, West Virginia.

The acquisition is expected to be completed by the end of January.

Under the terms of the deal, originally announced in July 2013, Community Health Systems will acquire each issued and outstanding share of the common stock of Health Management Associates for $10.50 in cash, 0.06942 of a share of Community Health Systems common stock, and a Contingent Value Right, which could yield additional cash consideration of up to $1.00 per share, depending on the outcome of certain litigation matters.