HMA to acquire Mercy for $525M

7/1/2011

Health Management Associates announced that it has entered into a definitive agreement to acquire Mercy Health Partners for $525 million.

The deal, which is subject to review by various authorities including the Vatican, is expected to be completed by Oct. 1.

Under the agreement, HMA plans to acquire or lease all seven of Mercy's
hospitals.

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 in Oneida.

It will also acquire substantially all of Mercy's ancillary health care operations as well as the former Riverside hospital campus in downtown Knoxville.

"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 East Tennessee. Our goal is to enable East Tennessee's best local health care," HMA President and CEO Gary D. Newsome said in a news release.

Mercy had announced in May that it planned to pursue a sale of its operations to the Florida-based hospital company. HMA is a for-profit health-care company.

"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 President and CEO Jeff Ashin said.

Source: Knoxville News Sentinel