Franklin, Tenn.-based Community Health Systems completed the sale of one of its hospitals in April and signed definitive agreements to sell six others this year, pending regulatory approvals.
On April 1, the for-profit system sold Plateau Medical Center in Oak Hill, W.Va., to Vandalia Health — headquartered in Charleston, W.Va. — for $92 million.
CHS is also selling the Medical Center of South Arkansas in El Dorado to South Arkansas Regional Hospital. Definitive agreements were also struck for the sale of Lake Norman Regional Medical Center in Mooresville, N.C., and Davis Regional Medical Center in Statesville, N.C., to Winston-Salem-based Novant Health for about $320 million.
CHS' most recent transaction is the proposed sale of three Florida hospitals to Tampa General Hospital for approximately $290 million. The hospitals include Bravera Health Brooksville, Bravera Health Seven Rivers in Crystal River and Bravera Health Spring Hill.
During CHS' first-quarter earnings call, president and CFO Kevin Hammons said the system is considering potential divestitures to "provide opportunities to pay down debt as well as allow opportunities to reinvest resources to areas of our portfolio to further accelerate their long-term growth in earnings."
CHS comprises 77 owned or leased affiliate hospitals across 15 states, according to its website. But the health system offloaded dozens of hospitals from its portfolio in recent years.
In 2016, CHS began refining its portfolio with the spinoff of Brentwood, Tenn.-based Quorum Health, which included 38 hospitals and its hospital management and consulting business. Over the next three years, CHS sold or closed dozens of hospitals.
Selling off hospitals and their associated assets helped reduce CHS' debt load. The health system had $13.88 billion in long-term debt when it announced its divestiture plan at the end of 2017. Since then, its net debt has shrunk substantially.