Franklin, Tenn.-based Community Health Systems signed a definitive agreement to sell three hospitals in Mississippi and one hospital in Florida to Clinton, Tenn.-based Curae Health.
CHS will divest Armory, Miss.-based Merit Health Gilmore Memorial, Batesville, Miss.-based Merit Health Batesville, Clarksdale-based Merit Health Northwest Mississippi and Sebring, Fla.-based Highlands Regional Medical Center.
CHS officials said they expect the transaction to close in the fourth quarter of this year, subject to customary regulatory approvals. The system plans to use proceeds from the sale to pay down debt.
"We are highly invested in the success of our affiliated hospitals, and we are considering how to best position them for the future," said Wayne Smith, chairman and chief executive officer of Community Health Systems. "These four hospitals provide quality care and are important in each of their communities. They will benefit from alignment with a smaller organization specializing in the operation of rural hospitals."