CHS subsidiary to assume operation of Gaffney Medical Center from Novant

Winston-Salem, N.C.-based Novant Health has signed a non-binding letter of intent under which a subsidiary of Franklin, Tenn.-based Community Health Systems will take over managing and operating Gaffney (S.C.) Medical Center.

The agreement would restructure a joint venture between Novant and Health Management Associates in Naples, Fla., involving the 125-bed hospital. CHS completed its acquisition of HMA earlier this year. CHS and Novant will now enter a period of exclusive negotiation and mutual due diligence to determine the details of a final agreement.

"The healthcare industry is experiencing unprecedented change," said Patrick Easterling, senior vice president of Novant Health consumer operations. "As a leading organization, Novant Health is committed to making strategic operational decisions to best respond to these changes and remain on the forefront of affordable, quality care. We engaged in a careful review of Gaffney Medical Center. Community Health Systems, a highly regarded national healthcare organization, provides a great opportunity for the long-term future of the hospital, the patients and the community we serve."