Franklin, Tenn.-based Community Health Systems has been busy selling, spinning-off and closing hospitals over the past four years.
CHS began refining its portfolio in 2016 with the spinoff of Quorum Health, which included 38 hospitals and CHS' hospital management and consulting business. Over the next three years, CHS sold or closed dozens of hospitals.
In 2017, CHS sold 30 hospitals and announced plans to divest another group with combined revenues of $2 billion. The company made progress toward that goal in 2018 and 2019, selling 26 hospitals and closing three others.
CHS is near the end of its hospital sell-off spree, according to the company's presentation at the J.P. Morgan Healthcare Conference in San Francisco on Jan. 15. CHS officials said they expect the remainder of the divestitures to close by mid-2020.
Shrinking its hospital portfolio has helped CHS reduce its debt load. The company carried $13.88 billion in long-term debt when it announced its divestiture plan at the end of 2017. CHS' long-term debt totaled $13.29 billion as of Sept. 30. The company's net debt has shrunk by $1.6 billion since Dec. 31, 2016, according to the presentation at the J.P. Morgan Healthcare Conference.