Clearview Regional’s Parent Company to Change Hands in $7.6 Billion Merger

Health Management Systems, Inc., the parent company for Clearview Regional Medical Center in Monroe, has been acquired by Community Health Systems, Inc. in a merger, according to a joint press release from the two companies. The merger was announced on July 30 and is expected to close the first quarter of 2014. It is subject, however, to approval by a 70-ercent vote of HMA’s stockholders, antitrust clearance, regulatory approvals and the absence of certain adverse developments and customary closing conditions.

According to the release, the terms of the agreement have CHS acquiring HMA for about $7.6 billion, including the assumption of $3.7 billion of indebtedness. When complete, CHS would own or operate about 206 hospitals in 29 states giving the company a total bed count of more than 31,000.

The merger agreement was unanimously approved by the Board of Directors of both companies and HMA recommended that stockholders also approve the merger.

"This compelling transaction provides a strategic opportunity to form a larger company with a diverse portfolio of hospitals that is well positioned to realize the benefits of health care reform and to address the changing dynamics of our industry," Wayne T. Smith, chairman, president and CEO of CHS, said in a press release.

James Machado, CEO of CRMC in Monroe said, "understandably," a fair amount of attention has been paid to the merger.

“There are some important points about this combination that I wanted to share with the Walton County community,” Machado said. “First, CHS desires to buy our parent company because it believes Health Management’s 71 facilities across the country, including Clearview Regional Medical Center, are excellent hospitals.”

Machado said, secondly, it is not expected that the operations of Clearview will be affected in any way for the foreseeable future.

“If anything, should the combination of our parent company with CHS occur, it will be very beneficial to all the hospitals involved – including Clearview Regional Medical Center and Walton County,” he said. “Together, I believe we will be part of an even stronger company which certainly benefits our community, our physicians, our associates, and most importantly our patients. We look forward to the combination and the opportunities it will present for all involved.”