Shareholders of Naples, Fla.-based Health Management Associates will vote on the pending merger with Franklin, Tenn.-based Community Health Systems on Jan. 8, 2014.
The announcement came through an amended proxy statement and prospectus that CHS posted through the Securities and Exchange Commission. Before the transaction can close, it needs to clear several hurdles, one of which is shareholder approval. At least 70 percent of Health Management owners must agree to the merger before it closes. CHS shareholders will not vote on the deal.
CHS and Health Management officials expect the transaction to close in the first quarter of 2014, and they could terminate the merger if it doesn't close before April 30. It received an extra boost last week after Health Management's new board and its largest shareholder, New York City-based hedge fund Glenview Capital Management, both gave their blessing to the takeover.
Within the filing, Health Management also lowered operating expectations for the remainder of the year. In June and July, Health Management predicted same-hospital revenue would grow 2 percent, and revenue from newly acquired hospitals would total $300 million. Those projections were lowered to 1.5 percent and $100 million, respectively.
Health Management also mentioned its contract dispute with Blue Cross & Blue Shield of Mississippi and its 10 Mississippi hospitals, as well as its $31 million repayment for inappropriate meaningful use payments from the government, as unexpected challenges.
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