SHANDS AND HEALTH MANAGEMENT TO JOINTLY OWN AND GOVERN RURAL COMMUNITY HOSPITALS
Date: May 27, 2010
Media Contacts:
Kim Rose, asst. director, Marketing & Public Relations, Shands HealthCare
Phone: 352-265-0373 or 800-535-0373
John Merriwether, vice president of Financial Relations, Health Management
Phone: 239-598-3131
Web: www.HMA.com
FOR IMMEDIATE RELEASE
SHANDS AND HEALTH MANAGEMENT TO JOINTLY OWN AND GOVERN RURAL COMMUNITY HOSPITALS
GAINESVILLE, Fla. (May 27, 2010)—Shands HealthCare and Health Management Associates (NYSE:HMA) today announced their partnership to jointly own and govern Shands’ three community hospitals — Shands Lake Shore in Lake City, Shands Live Oak and Shands Starke. Health Management is expected to begin managing the north central Florida rural facilities on July 1.
This partnership unites the strengths of two highly reputable healthcare organizations. Combining the best talents and resources of both ensures that these three hospitals remain vital medical centers amid a challenging economy and increasingly competitive healthcare environment. Health Management specializes in the management of non-urban/rural hospitals and is highly qualified to address their unique challenges and opportunities. Shands, a not-for-profit healthcare organization affiliated with the University of Florida, will continue its support of these hospitals with healthcare resources available through the Shands academic health system.
“Together, we plan to continue providing excellent, quality healthcare and service to these communities,” said Timothy Goldfarb, Shands HealthCare CEO. “The hospitals remain a valued and critical component within our health system. We will continue to support these dedicated teams and help the hospitals reach their full potential.”
Each of the three hospitals will continue to carry the Shands name. Health Management will purchase a 60-percent interest in the hospitals, and Shands will retain a 40-percent interest. Shands and Health Management will share equal governance of the hospitals. Employees at these sites will become Health Management employees, referred to as associates by Health Management.
“Health Management is proud to work alongside the highly respected associates, physicians and volunteers at these Shands hospitals,” said Gary Newsome, Health Management Associates president and CEO. “We are excited to join these communities and welcome our new associates to the Health Management family. Our goal is to make this transition a seamless one for all patients and staff.”
Naples-based Health Management has a successful history of partnering with hospitals in Florida and specializes in operating rural community hospitals. It currently manages 18 hospitals statewide and, through its subsidiaries, operates 55 hospitals in 15 states.
Both Shands and Health Management leaders value the skills and commitment of the Shands community hospital staff. Health Management shares similar values and practices with Shands and is similarly focused on employee satisfaction and retention, as well as employee reward and recognition for excellent care and service.
All Shands community hospital employees — including hospital leadership teams — will remain in their current positions at this time, base salaries will stay the same and tenure will be honored. Rhonda Sherrod will continue as the senior administrator for Shands Lake Shore, Shands Live Oak and Shands Starke.
“I’m excited about this journey. We have already created a foundation as our communities’ trusted healthcare providers, and we’re ready to build on that foundation,” Sherrod said. “I’m confident that with Health Management’s guidance we’ll make our rural hospitals stronger, more successful and the preferred healthcare leaders in our communities.”