Community Health Systems Inc. (NYSE:CYH), the Franklin, Tenn.-based hospital group, said Tuesday it will acquire Health Management Associates Inc. (NYSE:HMA) for $7.6 billion, including $3.7 billion in debt.

The deal means each share of Naples, Fla.-based Health Management will be converted into $10.50 and 0.07 of a Community Health share, leaving Health Management shareholders with 16 percent of the combined company. The acquisition will create a group that controls 206 hospitals and more than 31,000 beds in 29 states.

Shareholders will receive immediate value in cash, as well as CHS stock that will allow them to participate in the future growth of a true industry leader,” William J. Schoen, chairman of Health Management Associates, said in as statement.

Earlier this month, the U.S. Justice Department issued an additional subpoena and a request to interview two of the company’s high-ranking executives as part of a two-year investigation into Community Health’s emergency room admissions practices.

Health Management has been the subject of a U.S. Securities and Exchange Commission inquiry into its accounting practices, the Naples Daily News reported earlier this year.