Mega hospital merger cleared by Federal Trade Commission

Community Health Systems has reached an agreement with the Federal Trade Commission that will allow the Franklin, Tenn., hospital management company to complete its $7.6 billion acquisition of Health Management Associates Inc.

The deal with the FTC will require Community Health (NYSE: CYH) to divest two acute-care facilities and related outpatient businesses currently owned by subsidiaries of Florida-based HMA: Riverview Regional Medical Center, a 281-bed hospital located in Gadsden, Ala.; and Carolina Pines Regional Medical Center, a 116-bed hospital in Hartsville, S.C.

None of Community Health’s Philadelphia-area hospitals are affected by the agreement.

In this region, Community Health owns and operates Pottstown Memorial Medical Center; Phoenixville Hospital, Jennersville Region and Brandywine hospitals; Memorial Hospital of Salem County, plus Chestnut Hill Hospital, in a partnership with the University of Pennsylvania Health System.

The HMA (NYSE: HMA) acquisition is expected to be completed by the end of this month. Under the terms of the sale, Community Health will acquire each issued and outstanding share of the common stock of HMA for $10.50 in cash, 0.06942 of a share of Community Health 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."

Source: Philadelphia Business Journal