Community Health warnings could scuttle Health Management talks

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Community Health warnings could scuttle Health Management talks

By Deena Beasley (Reuters) - A warning from hospital operator Community Health Systems Inc of declining patient admissions and news that the U.S. government is stepping up a probe of how it handles Medicare patients will complicate efforts to buy rival Health Management Associates Inc, analysts said on Friday. They said a resulting 9 percent price drop in Community Health's shares together with lower earnings have significantly raised the cost of financing a deal. "This makes a deal much, much more difficult to do from a leverage perspective," said CRT Capital Group analyst Sheryl Skolnick. ...

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