More hospital deals on the horizon

Executives with Naples-based Health Management Associates told investors to expect more deals like the one they negotiated recently with Bayfront Health System in St. Petersburg.

HMA, which operates 70 hospitals with 10,500 beds, recently announced plans to acquire an 80% stake in the 480-bed Bayfront Health System for approximately $162 million. The company signed the agreement Feb. 4, and the agreement is subject to approval from the city of St. Petersburg and industry regulators.

“This partnership really offers us a tertiary hub for our west central and southwestern Florida hospitals and solidifies a great network of hospitals,” Gary Newsome, HMA's president and CEO, told investors during a conference call on Feb. 15, according to a transcript posted on SeekingAlpha.com. “We will continue to seek to invest in the strategic partnerships like Bayfront to broaden our network of hospitals, increase the density of services we provide and to build market share.”

In response to analyst questions, Newsome says government scrutiny of HMA and other hospital companies has not halted acquisitions or joint-venture partnerships like the one with Bayfront. He says the interest by hospitals to be acquired or partner with HMA has increased lately.