Community Health Systems is making progress toward its goal of divesting a group of hospitals with combined annual revenue of $2 billion.
The Franklin, Tenn.-based company entered into an agreement May 23 to sell College Station (Texas) Medical Center to CHI St. Joseph Health, a four-hospital system based in Bryan, Texas. Officials expect to finalize the sale of the 167-bed community hospital in the third quarter of this year.
CHS signed the agreement with CHI St. Joseph Health one day after announcing it entered into definitive agreements to sell two Florida hospitals to Altamonte Springs, Fla.-based Adventist Health System Sunbelt Healthcare. That transaction is also expected to close in the third quarter of 2019.
CHS has been selling off hospitals in recent years to improve its financial position and reduce its heavy debt load. In late 2017, the company announced a plan to sell a group of hospitals with combined annual revenue of $2 billion. During an earnings call on April 30, CHS Chairman and CEO Wayne Smith said the company expects to complete the hospital divestiture plan in 2019.
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