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Report: CHS, HCA, LifePoint Interested in Buying HMA

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Franklin, Tenn.-based Community Health Systems, Nashville, Tenn.-based Hospital Corp. of America and Brentwood, Tenn.-based LifePoint Hospitals have all expressed interest in buying Health Management Associates, according to an exclusive Reuters report.

Reuters spoke with three unnamed people "familiar with the matter" this week who said the three hospital chains have considered acquiring Naples, Fla.-based Health Management, which is worth more than $4 billion and operates 71 hospitals. The sources told Reuters that CHS is the "most likely buyer."

The for-profit hospital industry has been active and hectic so far in 2013. In June, Dallas-based Tenet Healthcare Corp. announced it will purchase Nashville, Tenn.-based Vanguard Health Systems for $1.8 billion in cash and assume Vanguard's $2.5 billion debt.

Health Management has been cited as the next takeover target after it has endured clashes with Glenview Capital Management, a New York City-based hedge fund controlled by Larry Robbins and the largest shareholder of Health Management.

As of 10 a.m. EDT Thursday, Health Management's stock was up 9.5 percent this week. CHS' stock has risen 4.4 percent, while HCA's and LifePoint's stock have increased 2.3 percent and 5.8 percent, respectively. Analysts at financial firm Jeffries said they have a "positive" view on Health Management's share value due to "the eventual sale of the company."

More Articles on Health Management Associates:
4 Major Providers Make Moves to Acquire Citrus Memorial Hospital
Glenview Capital Continues Push to "Revitalize" HMA
For-Profit Hospital Stock Report: Week of July 1-5, 2013

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