HMA buys hospitals for $525M

NAPLES — Health Management Associates Inc. (symbol: HMA) acquired the assets of Knoxville, Tenn.-based Mercy Health Partners for $525 million. Mercy's assets include seven hospitals, with 1,323 licensed beds.

A subsidiary of Catholic Health Partners Inc., Mercy Health generates roughly $600 million in annual net revenues. In 2010, HMA generated $5.1 billion in revenues. The deal announced last week is expected to close in October; when it does, Health Management will operate 66 hospitals, along with 10,300 licensed beds.

HMA's stock price is up more than 13% this year, to nearly $11 a share. Its 52 week-high was $11.74.