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(AP) - Community Health Systems plans to buy fellow hospital operator Health Management Associates for about $3.9 billion in a deal that it says will leave it well positioned to benefit from the health care overhaul.
The Franklin, Tenn., company says it will pay a combination of cash and stock valued at $13.78 for each share of Health Management Associates Inc., or HMA.
That represents a drop of more than 7 percent from HMA's closing price Monday of $14.92.
HMA shares fell 5.3 percent, or 79 cents, to $14.13 in pre-market trading.
The board members of both companies have approved the deal, but HMA stockholders still have to clear it.
The health care overhaul is expected to help hospitals as it expands insurance coverage to millions of people over the next few years.
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