NAPLES, Fla., Feb. 6 /PRNewswire-FirstCall/ -- Health Management Associates, Inc. announced today that it has acquired an 80% controlling interest in the Orlando Regional St. Cloud Hospital, located in St. Cloud, Florida. Orlando Regional Healthcare ("ORH") has retained a 20% ownership interest. The transaction was effective as of February 1, 2006. This is the first partnership between HMA and a not-for-profit hospital, and offers both organizations the opportunity to combine their respective strengths.
"HMA is very pleased to have established a partnership with ORH, and we are pleased to welcome the St. Cloud Hospital into HMA's family of non-urban hospitals that provide high-quality health care close to home," said Joseph V. Vumbacco, HMA's Chief Executive Officer and Vice Chairman. "ORH has an outstanding reputation for delivering high quality, innovative health care to both the residents and visitors of central Florida. We believe this partnership will further improve and expand the health care services that have been provided to patients of the St. Cloud area for the past 40 years."
HMA will assume operational responsibility for the hospital, and a local advisory board will be established, composed of representatives from the medical staff, the local community, ORH and HMA. The hospital operates 84 licensed beds and generates approximately $45 million in annual net revenue. Initial expansion projects will focus on the emergency room, surgical suites, and additional patient rooms.
"As with all of HMA's acquisitions, our proprietary Pulse System(R) was installed and operational upon completion of this transaction," added Vumbacco. "Negotiations with ORH have been open and very cooperative, and we look forward to a long and mutually beneficial relationship. HMA is very familiar with central Florida, and we recognize the continued growth potential of the Osceola county area. HMA expects health care services in the area will continue to be in strong demand, and we are eager to begin serving our newest community."
HMA has completed three hospital acquisitions during fiscal year 2006 and has announced two additional hospital acquisitions that are pending completion. Additional hospital acquisition opportunities are being reviewed.
HMA is a premier operator of non-urban general acute care hospitals in communities situated throughout the United States. HMA has generated 17 years of uninterrupted operating earnings growth. Upon completion of the previously announced transactions to acquire the 83-bed Cleveland Clinic -- Naples Hospital, and the 231-bed St. Joseph Hospital, HMA will operate 62 hospitals in 16 states with approximately 8,995 licensed beds.
All references to "HMA" used in this release refer to Health Management Associates, Inc. or its affiliates.
Certain statements contained in this release, including, without limitation, statements containing the words "believes," "anticipates," "intends," "expects," and words of similar import, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include projections of revenues, income or loss, capital expenditures, capital structure, or other financial items, statements regarding the plans and objectives of management for future operations, statements of future economic performance, statements of the assumptions underlying or relating to any of the foregoing statements, and other statements which are other than statements of historical fact.
Statements made throughout this release are based on current estimates of future events, and HMA has no obligation to update or correct these estimates. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially as a result of these various factors.
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20030418/HMALOGOAP Archive: http://photoarchive.ap.orgPRN Photo Desk, photodesk@prnewswire.comHealth Management Associates, Inc.CONTACT: John C. Merriwether, Vice President of Financial Relations ofHealth Management Associates, Inc., +1-239-598-3104
Web site: http://www.hma-corp.com/