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CHS divests 11 hospitals, adds 3 more to sale pipeline

Franklin, Tenn.-based Community Health Systems completed its sale Monday of eight hospitals to Boston-based Steward Health Care and divested two hospitals to Clinton, Tenn.-based Curae Health. 

CHS signed a definitive agreement to divest the hospitals to Steward in February. The following hospitals are included in the transaction:

1. 119-bed Wuesthoff Health System-Melbourne (Fla.)

2. 298-bed Wuesthoff Health System-Rockledge (Fla.)

3. 154-bed Sebastian (Fla.) River Medical Center

4. 355-bed Northside Medical Center in Youngstown, Ohio

5. 311-bed Trumbull Memorial Hospital in Warren, Ohio

6. 69-bed Hillside Rehabilitation Hospital in Warren, Ohio

7. 258-bed Sharon (Pa.) Regional Health System

8. 254-bed Easton (Pa.) Hospital

With the transaction completed, CHS no longer operates any hospitals in Ohio, while it continues to operate 21 hospitals in Florida and 15 in Pennsylvania.

The for-profit hospital operator also completed the sale of two Mississippi hospitals — 95-bed Merit Health Gilmore Memorial in Amory and 112-bed Merit Health Batesville — to Curae Health. After selling off the two facilities, CHS operates 10 hospitals in Mississippi.

Although CHS finalized several transactions, the company's divestiture spree is not over. CHS announced Monday it signed a definitive agreement to sell 88-bed Lake Area Medical Center in Lake Charles, La., to Irving, Texas-based Christus Health. The transaction, which is subject to customary regulatory approvals, is expected to close in the second quarter of this year. CHS will also divest 350-bed Tomball (Texas) Regional Medical Center and 67-bed South Texas Regional Medical Center in Jourdanton to Nashville, Tenn.-based HCA Holdings. The deal is expected to close this summer.  

The announcements regarding the transactions come after CHS said Friday it finalized the sale of 125-bed Stringfellow Memorial Hospital in Anniston, Ala., to The Health Care Authority of the City of Anniston.

All of the divestures are part of a financial turnaround plan CHS put into place last year. After ending 2016 with a net loss of $1.7 billion, the company said it planned to sell 25 hospitals to trim its debt load and improve its finances.

More articles on healthcare industry transactions:

CHS continues debt reduction effort with sale of Alabama hospital
Kansas hospital on brink of closure draws interest from buyers
U of L could spin off its hospital due to uncertain healthcare environment

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