LifePoint Hospitals Announces Termination of Asset Exchange Agreement with Health Management Associates

Business Wire, Dec 16, 2004

BRENTWOOD, Tenn. -- LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced that the previously announced agreement for the exchange of assets with Health Management Associates, Inc. ("HMA") (NYSE: HMA) was terminated, and no exchange will take place. Under the terms of the exchange agreement, LifePoint was to acquire from HMA substantially all of the assets of the 76-bed Williamson Memorial Hospital, located in Williamson, West Virginia, and HMA was to simultaneously acquire from LifePoint substantially all of the assets of the 56-bed Bartow Memorial Hospital, located in Bartow, Florida. LifePoint Hospitals expects to continue to seek a buyer for Bartow Memorial Hospital.

LifePoint Hospitals, a provider of healthcare services in attractive non-urban markets throughout the United States, operates 30 general acute care hospitals in nine states with approximately 2,771 licensed beds. Headquartered in Brentwood, Tennessee, LifePoint Hospitals is affiliated with over 9,800 employees.

This document may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Such forward-looking statements, particularly those statements regarding the effects of the asset exchange, reflect LifePoint Hospitals' and HMA's current expectations and beliefs, are not guarantees of performance of LifePoint Hospitals and are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those described in the forward-looking statements. For example, such risks, uncertainties, assumptions and other factors include, without limitation, the possibility that (i) reduction in payments to healthcare providers by government and commercial third-party payors, as well as cost-containment efforts of insurers and other payors; (ii) the possibility of adverse changes in, and requirements of, applicable laws, regulations, policies and procedures, including those required by our corporate integrity agreement; (iii) our ability to manage healthcare risks and the lack of state and federal tort reform; (iv) uncertainty associated with compliance with HIPAA regulations; (v) our ability to enter into and renew payor arrangements on acceptable terms; (vi) our ability to maintain and increase patient volumes and control costs; (vii) the availability, cost and terms of insurance coverage; (viii) the highly competitive nature of the healthcare business, including the competition to recruit and retain physicians; (ix) the ability to attract and retain qualified management and personnel; (x) the geographic concentration of our operations; (xi) our ability to acquire hospitals on favorable terms and to complete budgeted capital improvements successfully; (xii) our ability to operate and integrate newly acquired facilities successfully; (xiii) the availability and terms of capital to fund our business strategy; (xiv) changes in our liquidity or indebtedness; (xv) the potential adverse impact of government investigations and litigation involving the business practices of healthcare providers; (xvi) the successful development and license of software and management information systems; (xvii) changes in generally accepted accounting principles or practices; (xviii) volatility in the market value of our common stock; (xix) changes in general economic conditions and changes in the manner in which employers provide healthcare coverage to their employees; (xx) our reliance on information technology systems maintained by HCA, Inc.; (xxi) our ability to comply with all aspects of the Sarbanes-Oxley law; and (xxii) those risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission. For a further discussion of these and other risks, uncertainties, assumptions and other factors, see LifePoint Hospitals' and HMA's filings with the Securities and Exchange Commission. LifePoint Hospitals and HMA undertake no duty to update forward-looking statements.