A view of part of Bayfront Medical Center after it was announced it was sold for a again in recent times. A for-profit group from Tennessee bought the company which recently purchased the hospital group, which includes hospitals in Brooksville, Spring Hill and Dade City. JAY CONNER/STAFF
Published: July 30, 2013
Updated: July 30, 2013 at 06:15 PM
Bayfront Medical Center and several other Tampa-area community hospitals have been sold to a for-profit Tennessee hospital chain.
Community Health Systems on Tuesday morning formally announced its plans to buy fellow hospital operator Health Management Associates, based in Naples, for about $3.9 billion. Officials said the deal will leave it well positioned to benefit from the health care overhaul.
The Franklin, Tenn., company says it will pay a combination of cash and stock valued at $13.78 for each share of Health Management Associates Inc., which is better known as HMA.
That price represents a drop of more than 7 percent from HMA's closing price Monday of $14.92. HMA shares fell $1.62 to close at $13.30 Tuesday.
The board members of both companies have approved the deal, but HMA stockholders still have to clear it.
Less than a year ago, HMA purchased Bayfront, saying the downtown St. Petersburg trauma hospital would become the flagship of its West Florida network of smaller community hospitals. HMA paid $162 million to buy an 80 percent stake in Bayfront, a century-old independent hospital that had been struggling financially.
The St. Petersburg City Council had to sign off on the HMA sale and approve a 50-year lease because Bayfront sits on city-owned property. That lease requires the hospital to continue providing charity care to uninsured and underinsured residents. The lease terms will not change with the sale to Community Health, City Attorney John Wolfe said. The city is still investigating whether the buyout would require the City Council's approval, Wolfe said.
HMA, a Naples-based chain of 71 hospitals in the southeastern United States including 23 in Florida, has recently been under pressure from stockholders to make significant changes. Its chief executive announced he was stepping down, and the company also disclosed that federal officials were looking further into its emergency room operations and billings.
This month, HMA told its six regional hospitals they would be changing their names in August to reflect the new Bayfront Health brand. It's not clear how the sales affect those hospitals, including ones in Dade City, Brooksville and Spring Hill.