Community Health Systems and Health Management Associates

Text (OCR of the scan; may contain errors)

COMMUNITY HEALTH SYSTEMS

AND HEALTH MANAGEMENT ASSOCIATES

Docket No. C-4427. Order, February 24, 2015. Letter approving application to divest Riverview Regional Medical Center and its associated assets near Gadsden, Alabama, to Prime Healthcare Services, Inc.

LETTER ORDER APPROVING DIVESTITURE OF CERTAIN ASSETS

Bilal Sayyed, Esquire Kirkland & Ellis, LLP Dear Mr. Sayyed:

This responds to the Application for Approval of Proposed Divestiture (“Application”) to Prime Healthcare Services, Inc., filed by Community Health Systems on November 24, 2014. Pursuant to the Decision and Order in Docket No. C-4427, Community requests prior Commission approval of its proposal to divest certain assets to Prime. The Application was placed on the public record for comments for thirty days, until January 8, 2015, and no comments were received.

After consideration of the Application and other available information, the Commission has determined to approve the proposed divestiture to Prime as set forth in the Application. In according its approval, the Commission has relied upon the information submitted and the representations made by Community and Prime in connection with Community’s Application and has assumed them to be accurate and complete. This also responds to Community’s Petition for Extension of Time (“Petition”) filed by Community dated October 14, 2014. Pursuant to Commission Rule 4.3(b), 16 C.F.R. § 4.3(b), Community requests an extension of time in which to complete the divestiture required by the Decision and Order in this matter. Pursuant to the terms of the Decision and Order, Community was required to complete the divestiture within four months from the date the Commission issued the Order as final, or by October 14, 2014. Rule 4.3(b) provides that “the Commission, for good cause shown, may extend any time limit prescribed by Interlocutory Orders, Etc. the rules in this chapter or order of the Commission.” Under applicable precedent, Community has the burden of demonstrating good cause, and granting an extension of time rests in the discretion of the Commission. The Commission has reviewed this Petition, Community’s compliance reports, and other information, and, after careful consideration, has determined to grant this Petition and extend the time in which Community must complete the divestiture to Prime as approved by the Commission today. Community has shown that it began its divestiture efforts immediately upon reaching the consent agreement with the Commission staff, that it has acted diligently throughout the entire divestiture period and in close communication with the Commission staff to reach a final agreement with Prime, and that the delays in completing negotiations were not due to unreasonable demands or other unreasonable conduct by Community. The Commission expects that Community will complete the divestiture promptly upon the Commission’s approval.

By direction of the Commission.