Franklin, Tenn.-based Community Health Systems announced June 25 that it has signed a definitive agreement to sell Bayfront Health St. Petersburg (Fla.) to Orlando (Fla.) Health.
Under the agreement, Orlando Health will assume the long-term lease and operations of the 480-bed hospital. The lease transfer requires approval by the St. Petersburg City Council, and the transaction is subject to regulatory approvals.
The transaction, expected to close by the end of the third quarter, is one of the divestitures discussed on CHS' first quarter earnings call in late April. At that time, CHS said the divestitures that were in the works are expected to close before the fourth quarter and will mark the end of a portfolio rationalization strategy the company began nearly three years ago.
The hospital divestitures have helped CHS reduce its debt load. The company carried nearly $13.9 billion in long-term debt when it announced its divestiture plan at the end of 2017. CHS' long-term debt totaled $13.5 billion as of March 31.