The shrinking CHS hospital portfolio: 7 latest divestitures

April 27: CHS revealed it is offering its majority ownership interest in 84-bed St. Cloud (Fla.) Regional Medical Center to Orlando (Fla.) Health, which presently holds minority ownership interest.

April 27: CHS revealed it signed a conclusive arrangement to offer 2 hospitals in Texas. The business is offering 231-bed Abilene (Texas) Regional Medical Center and 188-bed Brownwood (Texas) Regional Medical Center to Abilene-based Hendrick Health System..

Jan. 1: Community Health Systems completed the sale of its three Virginia medical facilities on Jan. 1, roughly 2 months after participating in a conclusive contract with Cincinnati-based Bon Secours Mercy Health. The following healthcare facilities were consisted of in the transaction: 300-bed Southside Regional Medical Center in Petersburg; 105-bed Southampton Memorial Hospital in Franklin; and 80-bed Southern Virginia Medical Center in Emporia.

As part of a turnaround plan put into place in 2016 to improve its financial resources and decrease its heavy financial obligation load, CHS divested 30 medical facilities in 2017. With the aid of proceeds from the healthcare facility sales, CHS brought down its long-term financial obligation from $14.8 billion at the end of 2016 to $13.9 billion at the end of 2017.

Might 1: CHS completed the divestiture of 49-bed Shands Starke (Fla.) Regional Medical Center and 25-bed Shands Live Oak (Fla.) Regional Medical Center to Nashville, Tenn.-based HCA Healthcare, roughly three months after the parties got in into a conclusive arrangement. Under the contract, CHS ended inpatient and nonemergency services at the two health centers before the deal closed.

To even more reduce its financial obligation, CHS is selling another group of medical facilities with combined profits of $2 billion. During its first-quarter revenues call in April, the company said the divestitures that were in the works are expected to close before the 4th quarter and will mark the end of a portfolio justification technique it began almost three years earlier.

March 18: CHS got in into a definitive contract to sell 130-bed Northern Louisiana Medical Center in Ruston, to Allegiance Health Management. Northern Louisiana Medical Center is the only CHS healthcare facility in Louisiana..

June 25: CHS announced it signed a definitive contract to offer 480-bed Bayfront Health St. Petersburg (Fla.) to Orlando Health..

.

Below are seven divestiture transactions CHS has revealed or finished because Jan. 1..

Franklin, Tenn.-based Neighborhood Health Systems ended up being the biggest for-profit hospital operator in the country in 2014 when it got Naples, Fla.-based Health Management Associates. Now, the company is selling medical facilities to pay for its debt.

More articles on health care market deals: Quorum Health sells Illinois hospitalCommonSpirit strikes partnership to offer direct-to-employer primary careOrlando Health, LHC Group to form joint venture

April 20: CHS announced it signed a conclusive agreement to offer 171-bed San Angelo (Texas) Community Medical Center to Shannon Health System in San Angelo. The transaction needs approval by the Texas Health and Human Services Commission, and CHS stated the regulatory review procedure is expected to conclude by the end of the third quarter..

© Copyright ASC COMMUNICATIONS 2020. Intrigued in LINKING to or REPRINTING this content? View our policies by click on this link.

To even more decrease its financial obligation, CHS is selling another group of health centers with combined revenue of $2 billion. The company has made development towards that objective. During its first-quarter profits call in April, the company said the divestitures that were in the works are expected to close prior to the 4th quarter and will mark the end of a portfolio justification strategy it started nearly three years back. Interested in LINKING to or REPRINTING this material?