HMA buy­ing 60% in­ter­est in three Shands hos­pi­tals

Modern Healthcare - - Late News -

Health Man­age­ment As­so­ci­ates agreed to pay $21.4 mil­lion to ac­quire a 60% in­ter­est in three ru­ral Florida hos­pi­tals op­er­ated by Shands Health­Care, ac­cord­ing to HMA and Shands. Shands, based in Gainesville, Fla., will re­tain a 40% in­ter­est. Naples, Fla.-based HMA said it ex­pects the deal to close by July 1. Shands, a five-hos­pi­tal sys­tem fo­cused pri­mar­ily on its large ur­ban med­i­cal cen­ters in Gainesville and Jack­sonville, Fla., doesn’t have the ex­per­tise or the cap­i­tal to make the other three hos­pi­tals thrive, Shands CEO Ti­mothy Goldfarb said. For the fis­cal year ended June 30, 2009, the three hos­pi­tals’ com­bined an­nual net rev­enue was $98 mil­lion and com­bined net loss was $3.5 mil­lion, ac­cord­ing to a bond dis­clo­sure. For the nine months ended March 31, 2010, the hos­pi­tals lost nearly $6 mil­lion. While HMA would take op­er­a­tional con­trol of the hos­pi­tals, over­all gov­er­nance would be split 50-50, and each hos­pi­tal would have a lo­cal ad­vi­sory board.

HMA is buy­ing a 60% in­ter­est in three Shands hos­pi­tals, in­clud­ing Shands Lake Shore, Lake City, Fla.

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