NAPLES — Health Management Associates Inc. announced that a subsidiary has executed a definitive agreement to form a joint venture with St. Petersburg's Bayfront Health System, HMA says in a release.
As part of the partnership, HMA will acquire an 80% interest in the 480-bed Bayfront Health System and will introduce an affiliation with Shands-HealthCare, part of UF&Shands, the University of Florida's health center.
Terms of the deal were not disclosed, but the release says net proceeds of about $150 million will be invested in the new Bayfront HERO (Health, Education and Research Organization) Foundation. In turn, Bayfront HERO will invest a 20% ownership stake in the partnership.
The deal is subject to the execution of a lease agreement between the new partnership and the city of St. Petersburg, which owns the land on which the hospital sits, as well as other customary regulatory approvals, according to the release.
Naples-based HMA (symbol: HMA, recent price: $10.55) operates 70 hospitals in the U.S., with about 10,500 licensed beds.