HMA sale OK after all

When Glenview Capital Management led a shareholder revolt to oust the board of Naples-based Health Management Associates, it questioned the board's deal to sell HMA to Community Health Systems for $7.6 billion.

Statements by Glenview during the board fight left some shareholders wondering whether there might be a better deal out there, or perhaps that HMA should remain independent. Shareholders ousted the HMA board, led by longtime chairman William Schoen, in August.

But after 89 days and numerous meetings, the new board selected by Glenview blessed the sale to Tennessee-based Community Health, orchestrated by the board it had just ousted.

“In sum, none of the alternatives available to HMA had the same near-term or mid-term potential for value creation as the Community Health transaction. In light of that fact, we have firmly concluded that a transaction with Community Health represents the best path forward to our company and our shareholders,” Steven Shulman, HMA's board chairman told analysts in the transcript of a Nov. 13 call posted on SeekingAlpha.com.