Community Health Systems, Inc. (NYSE: CYH) announced today that a subsidiary of the Company has executed a definitive agreement under which it will enter into a long-term lease of 421-bed Munroe Regional Medical Center in Ocala, Florida. The agreement also provides for the creation of a clinical affiliation between Munroe Regional Medical Center and UF Health Shands, which will hold a minority equity position in the hospital operating company.
This definitive agreement culminates negotiations that originated between Munroe Regional Medical Center and Health Management Associates, Inc. (HMA.) In conjunction with its acquisition of HMA, Community Health Systems agreed to complete the lease transaction.
Commenting on today’s announcement, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, “We are very pleased to move forward in this relationship and look forward to working with the medical staff and employees of Munroe Regional in support of the quality care they provide for their community. We also look forward to the contributions UF Health Shands will bring to Munroe Regional and to the benefits of clinical affiliation with an academic healthcare leader in Florida.”
The 40-year, prepaid lease is expected to begin in the second quarter of 2014, subject to regulatory approvals and customary closing conditions. With the addition of Munroe Regional, Community Health Systems’ affiliates will operate 26 hospitals in Florida.About Community Health Systems, Inc. Community Health Systems, Inc. is one of the largest publicly-traded hospital companies in the United States and a leading operator of general acute care hospitals in communities across the country. Through its subsidiaries, the Company currently owns, leases or operates 206 affiliated hospitals in 29 states with an aggregate of approximately 31,000 licensed beds. The Company’s headquarters are located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.” More information about the Company can be found on its website at www.chs.net. Forward-Looking Statements Statements contained in this news release regarding expected operating results, acquisition transactions or divestitures and other events are forward-looking statements that involve risk and uncertainties. Actual future events or results may differ materially from these statements. Readers are referred to the documents filed by Community Health Systems, Inc. with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K, current reports on Form 8-K and quarterly reports on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
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