Health Management Associates Announces Agreement to JV Bayfront Health System

Health Management Associates, Inc. (NYSE: HMA) today announced that asubsidiary has executed a definitive agreement to partner with the 480-bedBayfront Health System, located in St. Petersburg, Florida. The transaction issubject to the execution of a lease agreement between the partnership and theCity of St. Petersburg, as well as customary regulatory approvals.“We have been very pleased with the collaborative process and the hard workeveryone is doing to make this partnership a reality,” said Gary D. Newsome,President and Chief Executive Officer of Health Management. “We continue towork closely with Bayfront's senior leaders, Board of Trustees, and the St.Petersburg City Council to modernize the lease agreement and to create apartnership that will serve the needs of the citizens of the St. Petersburgcommunity for generations to come. We are committed to high quality care andto positioning Bayfront as a flagship tertiary hospital for the entireregion.”As part of the joint venture, Health Management will acquire an 80% interestin Bayfront Health System, and introduce an affiliation with ShandsHealthCare,part of UF&Shands, the University of Florida Academic Health Center. Althoughterms of the transaction have not been disclosed, net proceeds ofapproximately $150 million will be invested in the new Bayfront HERO (Health,Education and Research Organization) Foundation. This foundation will investin research and education in partnership with Bayfront Health System, JohnsHopkins/All Children's Healthcare and other healthcare and academic partners.Bayfront HERO will invest in a 20 percent ownership stake in the partnership.“Partnering with Bayfront Health System is a very exciting opportunity to notonly strengthen our network of services in west central and southwesternFlorida, but combine a shared culture of patient focused health caredelivery,” added Newsome. “This partnership underscores our commitment toenabling America's best local health care through strategic investments inexisting regions to improve access to high quality health care services forthe communities we serve. We look forward to working together with thephysicians, medical professionals and hospital staff to continue Bayfront'smore than 100-year history of delivering high quality health care towest-central Floridians. Together we can improve our ability to anticipate andexceed our customers' expectations for world-class health care.”Health Management enables America's best local health care by providing thepeople, processes, capital and expertise necessary for its hospital andphysician partners to fulfill their local missions of delivering superiorhealth care services. Upon completion of this transaction, Health Management,through its subsidiaries, will operate 71 hospitals, with approximately 11,000licensed beds, in non-urban communities located throughout the United States.All references to "Health Management" and the “Company” used in this releaserefer to Health Management Associates, Inc. and its affiliates.