Naples-based hospital operator Health Management Associates Inc. has announced it will acquire the assets of Mercy Health Partners, a subsidiary of Catholic Health Partners Inc.
HMA owns Lehigh Regional Medical Center in Lehigh Acres.
As a result of the agreement, HMA will acquire or lease Mercy’s seven hospitals, which combined have 1,323 licensed beds and offer services that are part of the Knoxville-based East Tennessee health system.
“The Mercy system enjoys strong community support with an excellent medical staff and dedicated employees,” Gary D. Newsome, HMA’s president and CEO, said in a statement. “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.”
Mercy Health Partners has provided healthcare in east Tennessee for more than 80 years.
The hospitals included in the transaction are the 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.
“Health Management has a proven track record of investing both human and financial resources in its hospitals so that they can fulfill their local missions of delivering superior health care services. As such, it has earned the national reputation of being a strong operator of hospitals,” Jeffrey A. Ashin, president and CEO of Mercy Health Partners, said in a statement. “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.”
Mercy Health Partners generates about $600 million in net revenues annually. The purchase price is expected to be about $525 million. The deal is expected to close by October 1.
After completing the transaction, HMA, through its subsidiaries, will operate 66 hospitals, with approximately 10,300 licensed beds throughout the United States. Locally, its hospitals include Physicians Regional-Pine Ridge and Physicians Regional-Collier Boulevard in Collier County and the Lehigh Regional Medical Center in Lehigh Acres.