Franklin, Tenn.-based Community Health Systems has signed a definitive agreement to sell eight hospitals in Florida, Ohio and Pennsylvania to Boston-based Steward Health Care.
The following hospitals are included in the transaction:
- 119-bed Wuesthoff Health System-Melbourne (Fla.)
- 298-bed Wuesthoff Health System-Rockledge (Fla.)
- 154-bed Sebastian (Fla.) River Medical Center
- 355-bed Northside Medical Center in Youngstown, Ohio
- 311-bed Trumbull Memorial Hospital in Warren, Ohio
- 69-bed Hillside Rehabilitation Hospital in Warren, Ohio
- 258-bed Sharon (Pa.) Regional Health System
- 254-bed Easton (Pa.) Hospital
Regarding the deal with Steward, CHS Chairman and CEO Wayne T. Smith said, "This transaction is a significant step in our strategic work to optimize our portfolio and operations for the future. These hospitals play an important role in their communities and can benefit from Steward Health Care's community-based care model going forward."
The transaction, which is subject to customary regulatory approvals, is expected to close in the second quarter of 2017.
Selling off the eight hospitals is part of a turnaround plan CHS put into place last year to improve its finances. In an attempt to trim its debt load, the company is selling 17 hospitals and other assets to generate an expected $1.2 billion in working capital.
In November, CHS signed a $425 million definitive agreement to sell Spokane, Wash.-based Rockwood Health System to Tacoma, Wash.-based MultiCare. That transaction is expected to close in the first quarter of 2017. In December, CHS signed a definitive agreement to sell Yakima (Wash.) Regional Medical Center & Cardiac Center and Toppenish (Wash.) Community Hospital to Sunnyside (Wash.) Community Hospital & Clinics for approximately $45 million. That deal is expected to close in the second quarter of this year. In January, CHS completed the sale of a majority interest in CHS Home Health to Louisville, Ky.-based Almost Family, a provider of home health nursing services
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