Community to Buy Health Management for $3.9 Billion

Community Health Systems Inc., the second-largest U.S. hospital chain, agreed to buy Health Management Associates for $3.9 billion in cash and stock in a deal that’s being questioned by an activist investor group that says its wants more time to review the details.

Glenview Capital Management LLC, the owner of about 15 percent of Health Management stock, said today investors should replace the company’s board with its nominated directors to build value into the Naples, Florida-based hospital system and investigate possible alternative proposals. Glenview has sought to oust the board because of its “substandard strategic and financial approach,” the group has said.