Health Management Associates to acquire 60% interest in three Shands HealthCare hospitals

Health Management Associates, Inc. (NYSE: HMA) today announced that it has executed definitive agreements to acquire a 60% interest in three Shands HealthCare hospitals: Shands Lake Shore located in Lake City, Florida, Shands Live Oak, located in Live Oak, Florida and Shands Starke, located in Starke, Florida. Shands HealthCare ("Shands") will retain a 40% ownership interest in each hospital. The transaction is expected to be completed by July 1, 2010.

“We are very pleased to partner with Shands HealthCare to improve the quality of care, develop and enhance needed services and expand access for the residents of Bradford, Columbia and Suwannee counties”

"We are very pleased to partner with Shands HealthCare to improve the quality of care, develop and enhance needed services and expand access for the residents of Bradford, Columbia and Suwannee counties," said Gary D. Newsome, President and Chief Executive Officer of Health Management. "Health Management has experience in developing successful hospital partnerships, and we are excited to join with Shands to deliver superior care to these three communities. Shands, which is affiliated with the University of Florida, has an outstanding reputation for delivering high quality health care, having been awarded numerous national and state accolades for its clinical outcomes, and we look forward to a long and mutually beneficial relationship."

Health Management will assume operational responsibility for the hospitals, and local advisory boards comprised of representatives from the medical staff, the local community, Shands and Health Management will be established at each respective hospital. Combined, the three hospitals operate 139 beds and generate approximately $100 million of annual net revenue.