Franklin, Tenn.-based Community Health Systems became the largest for-profit hospital operator in the nation in 2014 when it acquired Naples, Fla.-based Health Management Associates. Now, the company is selling off hospitals to pay down its debt.
As part of a turnaround plan put into place in 2016 to improve its finances and reduce its heavy debt load, CHS divested 30 hospitals in 2017. With the help of proceeds from the hospital sales, CHS brought down its long-term debt load from $14.8 billion at the end of 2016 to $13.9 billion at the end of 2017.
To further reduce its debt, CHS intends to sell another group of hospitals with combined revenue of $2 billion. The company has made progress toward that goal this year. During 2018, CHS has completed nine hospital divestitures, entered into definitive agreements to sell five others, and brought its debt load down to $13.5 billion.
Here's a breakdown of the hospitals CHS has divested in 2018:
1. On April 1, CHS completed the sale of 120-bed Bayfront Health Dade City (Fla.) to Altamonte Springs, Fla.-based Adventist Health System. The hospital, which is now part of Adventist's West Florida Division, was renamed Florida Hospital Dade City.
2. CHS sold 85-bed Tennova Healthcare-Jamestown (Tenn.) to West Palm Beach, Fla.-based Rennova Health on June 1.
3. On June 1, CHS completed the sale of 60-bed Byrd Regional Hospital in Leesville, La., to Allegiance Health Management in Shreveport, La.
4. CHS sold 76-bed Williamson (W.Va.) Memorial Hospital to Mingo Health Partners on June 1.
5. On June 1, CHS completed the sale of 100-bed Tennova Healthcare-Volunteer Martin (Tenn.) to Jackson-based West Tennessee Healthcare.
6. CHS sold 225-bed Tennova Healthcare-Dyersburg (Tenn.) Regional to West Tennessee Healthcare on June 1.
7. On June 1, CHS sold 150-bed Tennova Healthcare-Regional Jackson (Tenn.) to West Tennessee Healthcare.
8. On Aug. 1, CHS completed the sale of 425-bed Munroe Regional Medical Center in Ocala, Fla., to Altamonte Springs, Fla.-based Adventist Health System. Adventist renamed the facility Florida Hospital Ocala.
9. CHS sold 238-bed AllianceHealth Deaconess in Oklahoma City to a subsidiary of Oklahoma City-based Integris Health on Oct. 1.
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