Health Management Associates, Inc. (HMA) announced it has sold a 27 percent minority interest in its seven hospitals located in North and South Carolina to Novant Health for $300 million. The parties completed the transaction on March 31, 2008.
HMA and Novant will share governance of the joint venture through a partnership board; HMA will continue to manage the hospitals on behalf of the joint venture. Over a four-month transition period, Novant will assume ownership and operation of the hospitals’ employed physician practices, which HMA will subsidize partially for the first three years if necessary.
Novant Health is a not-for-profit group of hospitals and physician clinics that includes nine hospitals, an 830-physician medical group, two nursing homes, and 130 outpatient facilities. For-profit HMA owns and operates 58 hospitals, with approximately 8,300 licensed beds, in non-urban communities located throughout the United States. Read the press release.
