The new board of directors of Health Management Associates Inc had hired financial advisers to review the USD3.9 billion bid offered by Community Heath Systems, the second largest US hospital group.
The evaluation would need to be in line with the terms of the acquisition agreement announced last July 30 according to a statement from Health Management. The deal, consisting of cash and stocks, expected to be completed by the end of the first quarter of 2014. This was confirmed by the Naples, FL based company.
Health Management manages 71 hospitals in 15 different states, mostly in non-urban regions. The new board was installed after Glenview Capital Management LLC, who owns 15% of the company stock, had ousted the previous board and appointed its new nominees who are now conducting the evaluation.
According to Community Health spokesperson Tom Galin, through an email, said, "Both organizations are working diligently towards completing the transaction, which we expect to close in the first quarter of 2014."
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