HMA Sign Definitive Agreement To Buy Mercy Assets
"Health
Management is very pleased to have been chosen to continue Mercy Health
Partners' long-standing tradition of delivering high quality health care to the
growing needs of the Knoxville community and greater East Tennessee
region," said Gary D. Newsome, President and Chief Executive Officer of
Health Management. "The Mercy system enjoys strong community support with
an excellent medical staff and dedicated employees. Health Management intends
to build upon this solid foundation and continue to enhance the quality of
health care, increase the range of services and improve access to needed
medical services for
The hospitals included in the transaction are: 401-bed Mercy Medical Center St. Mary's in Knoxville; 101-bed Mercy Medical Center West in Knoxville; 108-bed Mercy Medical Center North in Powell; 58-bed St. Mary's Jefferson Memorial Hospital in Jefferson City; 74-bed Baptist Hospital of Cocke County in Newport; 66-bed St. Mary's Medical Center of Campbell County in LaFollette; and 25-bed St. Mary's Medical Center of Scott County. Health Management's subsidiary will also acquire substantially all of Mercy's ancillary health care operations (which are licensed to operate 197 beds) located in the Knoxville, Tennessee region associated with the operations of the above hospitals, as well as the former Riverside hospital campus (which is licensed to operate 293 beds).
"Health Management has a proven track record of investing both human and financial resources in its hospitals so that they can fulfill their local missions of delivering superior health care services. As such, it has earned the national reputation of being a strong operator of hospitals," said Jeffrey A. Ashin, President and Chief Executive Officer, Mercy Health Partners. "Through Health Management, our hospitals will be able to invest in their facilities and new technologies, and provide the training needed to ensure Mercy continues to provide the best, most current care available in our communities. For these, and many other reasons, I strongly believe that Health Management Associates is the perfect match for Mercy Health Partners."
Mercy
Health Partners generates approximately $600 million of annual net revenue. The
purchase price for this transaction is expected to be approximately $525
million, plus certain adjustments for working capital, and the assumption of
certain long-term lease liabilities. The proposed acquisition is subject to
review and approval by appropriate authorities, including the
While St.
Mary’s Medical Center of Scott County will be included in the initial
transition, the current lease of the facility will lapse on May 24, 2012.