Community Health Systems, Inc.
Financial solution for the largest hospital operator in the United States
Community Health Systems, Inc. (CHS) (NYSE: CYH) , one of the largest hospital organizations in the nation, agreed to acquire Health Management Associates to become the largest hospital operator in the United States. This acquisition would further position the organization to address the changing dynamics of the healthcare industry. CHS required the proper financial solution to consummate the acquisition and to provide sufficient ongoing working capital to finance the operating needs of the larger organization. Both Community Health Systems, Inc. and Health Management Associates, Inc. have been established customers of Siemens Medical USA.
Siemens Financial Services (SFS) participated at the Co-Manager level in a broadly syndicated senior secured credit facility in the aggregate amount of $4.3 billion by committing $105 million to the credit. The credit facility contributed to CHS’ purchase of Health Management Associates, refinanced existing debt, and provided for future working capital needs.
Benefits for Customer
Provided funding to enable CHS to support its largest acquisition to date. The acquisition made CHS the largest hospital operator in the United States by number of facilities with over 200 hospitals in 29 states. The company’s larger size resulted in increased economies of scale and the growth of strong healthcare networks that provide quality care for millions of patients in the communities that the organization serves.