AMORY – Gilmore Memorial Regional Medical Center has a new parent company.
On Monday, Tennessee-based Community Health Systems officially completed its acquisition of Florida-based Health Management Associates, which includes the Amory hospital and nine other Mississippi hospitals.
“The transaction does not impact local operations,” said J. Allen Tyra, Gilmore chief executive, in a news release. “Gilmore Memorial Regional Medical Center will continue to operate under the same name. We will continue to participate in the same managed care contracts and government reimbursement programs. Most importantly, the community will continue to receive the high-quality care they have come to expect from the nurses, physicians and employees they already know and trust.”
The deal – $7.6 billion, including $3.7 billion of HMA’s debt – has been in the works since July. HMA shareholders approved the deal earlier this month. Last week, the companies reached an agreement with the Federal Trade Commission. Today, HMA officially ceased public trading.
“This transaction provides us with increased scale and broader geographic reach as we work to create strong healthcare networks across the nation,” said Wayne T. Smith, chairman and chief executive officer of Community Health Systems, in a press release. “Our larger organization is well positioned to address the changing dynamics in our industry and dedicated to providing quality care for millions of patients and all the communities we serve.”
According to the (Nashville) Tennessean, the acquisition creates the largest for-profit hospital system in terms of the number of facilities – some 206 in 29 states.
HMA shareholders will receive $10.50 per share in cash plus shares of Community Health Systems common stock.
There remains an ongoing lawsuit against an HMA hospital in Pennsylvania and, under the agreement with the FTC, Community Health Systems will have to let go of two HMA hospitals – one in Alabama and another in South Carolina – in markets where it already owned hospitals.