Hospital operators face a buyer’s market for acquisitions as weaker companies struggle with higher costs and a decades-long drop in admissions, the chief executive officer of Tenet Healthcare Corp. said.
Health Management Associates Inc.’s new board of directors confirmed its support of the company’s $3.9 billion takeover by Community Health Systems Inc., the second-biggest U.S. hospital chain, after consulting with advisers hired to evaluate the deal.
Community Health Systems Inc., the second-largest U.S. hospital system, is negotiating with the Justice Department to resolve investigations into five years of admissions and a hospital in Laredo, Texas.
Community Health Systems Inc. ’s unsolicited $3.3 billion offer for Tenet Healthcare Corp . may prompt rival suitors as it seeks to become the largest U.S. hospital operator. Tenet’s shares rose 55 percent.