NAPLES, Fla.--(BUSINESS WIRE)--Health Management Associates, Inc. (NYSE: HMA) today announced that a subsidiary has executed a definitive agreement to partner with the 480-bed Bayfront Health System, located in St. Petersburg, Florida. The transaction is subject to the execution of a lease agreement between the partnership and the City of St. Petersburg, as well as customary regulatory approvals.
“We have been very pleased with the collaborative process and the hard work everyone is doing to make this partnership a reality,” said Gary D. Newsome, President and Chief Executive Officer of Health Management. “We continue to work closely with Bayfront’s senior leaders, Board of Trustees, and the St. Petersburg City Council to modernize the lease agreement and to create a partnership that will serve the needs of the citizens of the St. Petersburg community for generations to come. We are committed to high quality care and to positioning Bayfront as a flagship tertiary hospital for the entire region.”
As part of the joint venture, Health Management will acquire an 80% interest in Bayfront Health System, and introduce an affiliation with ShandsHealthCare, part of UF&Shands, the University of Florida Academic Health Center. Although terms of the transaction have not been disclosed, net proceeds of approximately $150 million will be invested in the new Bayfront HERO (Health, Education and Research Organization) Foundation. This foundation will invest in research and education in partnership with Bayfront Health System, Johns Hopkins/All Children’s Healthcare and other healthcare and academic partners. Bayfront HERO will invest in a 20 percent ownership stake in the partnership.
“Partnering with Bayfront Health System is a very exciting opportunity to not only strengthen our network of services in west central and southwestern Florida, but combine a shared culture of patient focused health care delivery,” added Newsome. “This partnership underscores our commitment to enabling America’s best local health care through strategic investments in existing regions to improve access to high quality health care services for the communities we serve. We look forward to working together with the physicians, medical professionals and hospital staff to continue Bayfront’s more than 100-year history of delivering high quality health care to west-central Floridians. Together we can improve our ability to anticipate and exceed our customers’ expectations for world-class health care.”
Health Management enables America's best local health care by providing the people, processes, capital and expertise necessary for its hospital and physician partners to fulfill their local missions of delivering superior health care services. Upon completion of this transaction, Health Management, through its subsidiaries, will operate 71 hospitals, with approximately 11,000 licensed beds, in non-urban communities located throughout the United States.
All references to "Health Management" and the “Company” used in this release refer to Health Management Associates, Inc. and its affiliates.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," “intends,” "plans," “may,” “continues,” “should,” "could" and other similar words. All statements addressing operating performance, events or developments that Health Management Associates, Inc. expects or anticipates will occur in the future, including but not limited to incurrence of indebtedness, projections of revenue, income or loss, capital expenditures, earnings per share, debt structure, the provision for doubtful accounts, capital structure, repayment of indebtedness, the amount and timing of funds under the meaningful use measurement standard of various HCIT incentive programs, other financial items and operating statistics, statements regarding the plans and objectives of management for future operations, innovations, or market service development, statements regarding acquisitions, joint ventures, divestitures and other proposed or contemplated transactions (including but not limited to statements regarding the potential for future acquisitions and perceived benefits of acquisitions), statements of future economic performance, statements regarding legal proceedings and other loss contingencies (including but not limited to the timing and amount of costs incurred in connection with such proceedings), statements regarding market risk exposures, statements regarding the effects and/or interpretations of recently enacted or future health care laws and regulations, statements of the beliefs or assumptions underlying or relating to any of the foregoing statements, and other statements which are other than statements of historical fact, are considered to be "forward-looking statements."
Because they are forward-looking, such statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Health Management Associates, Inc.'s most recent Annual Report on Form 10-K, and Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, including under the heading entitled "Risk Factors." Should one or more of these risks or uncertainties materialize, or should any of Health Management Associates, Inc.'s underlying beliefs or assumptions prove incorrect, actual results could vary materially from those currently anticipated. In addition, undue reliance should not be placed on Health Management Associates, Inc.'s forward-looking statements. Except as required by law, Health Management Associates, Inc. disclaims any obligation to update its risk factors or to publicly announce updates to the forward-looking statements contained in this press release to reflect new information, future events or other developments.