Hospital operator HMA considers sale

NAPLES — Health Management Associates says it has hired investment bankers to consider “strategic alternatives,” a euphemism for saying the company is considering selling itself.

Over the last five days, HMA's stock price has risen 12% on the New York Stock Exchange as analysts have speculated Naples-based HMA could be acquired. Community Health Systems has been cited as one possible suitor, for example. In addition, HMA's CEO, Gary Newsome, recently announced his retirement, further fueling that speculation.

HMA, which owns and operates 71 hospitals in non-urban areas around the country, says in a statement it hired investment banking firm Morgan Stanley and corporate-transaction attorneys Weil, Gotshal & Manges. The company says the move is in connection with the recent accumulation of shares by investment firm Glenview Capital Management “as well as the board's ongoing consideration of strategic alternatives and opportunities.” Such euphemistic language means the company is for sale.

“HMA does not intend to disclose developments with respect to the foregoing until such time as the board deems further disclosure appropriate,” the company says in a brief statement filed with securities regulators on Wednesday evening.