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Novant Health has completed an agreement with Health Management Associates, Inc. (HMA) and purchased a 27 percent share of ownership of all seven HMA hospitals in North Carolina and South Carolina for $300 million. The parties completed the transaction on March 31, 2008.

The hospitals include Davis Regional Medical Center, Statesville, NC; Lake Norman Regional Medical Center, Mooresville, NC; Franklin Regional Medical Center, Louisburg, NC; Sandhills Regional Medical Center, Hamlet, NC; Chester Regional Medical Center, Chester, SC; Upstate Carolina Medical Center, Gaffney, SC; and Carolina Pines Regional Medical Center, Hartsville, SC. In total these hospitals consist of 711 beds and serve as community hospitals in their regions.

"We are particularly pleased and honored to have Novant Health as our partner," said Burke W. Whitman, HMA's President and Chief Executive Officer. "Novant has an unsurpassed reputation for delivering high quality, innovative health care to the residents and visitors of North Carolina. Novant's partnership will materially reinforce our mission, strengthen our operating performance, and provide a more comprehensive service network for our patients, physicians and the communities we serve in North and South Carolina."

HMA and Novant will share governance of the joint venture through a partnership board. HMA will continue to manage the hospitals on behalf of the joint venture. The partnership will also establish a Quality Advisory Committee, with equal representation from both organizations, whose objective will be to ensure that all seven hospitals exceed the hospital industry's leading benchmarks for clinical and service quality. The partnership will also develop several mutually beneficial revenue and operational synergies, including more seamless delivery of care.

"We have been impressed with HMAs commitment to the communities they serve," explained Paul Wiles, President and CEO of Novant Health. "The seven hospitals are community leaders in their respective counties. We believe that together we can prioritize the highest quality of care for patients and accessible healthcare for residents, including those who struggle financially."

Novant Health is a not-for-profit integrated healthcare system that includes nine hospitals, an 830-physician medical group, two nursing homes and 130 outpatient facilities including diagnostic centers, rehabilitation programs, surgery centers and community health outreach programs. Novant's mission is to improve the health of communities, one person at a time.

HMA's mission is the delivery of compassionate and high quality health care services that improve the quality of life for patients, physicians, and the communities they serve. The company owns and operates 58 hospitals, with approximately 8,300 licensed beds, in non-urban communities located throughout the United States.