Below are the divestiture transactions and medical facility closures CHS has announced or completed in the past six months, starting with the most recent..
To further reduce its financial obligation, CHS is offering another group of health centers with combined income of $2 billion. During its first-quarter incomes call in April, the business stated the divestitures that were in the works are expected to close prior to the fourth quarter and will mark the end of a portfolio rationalization strategy it began nearly three years back.
The health center, owned by the Lake Shore Hospital Authority, closed less than two months after announcing plans to shut down. The healthcare facility had to borrow cash to keep operations, and declining client volume and financial difficulties resulted in losses that were unsustainable, the hospital said.The medical facility revealed strategies to close after CHS, which runs the medical facility, entered into a settlement and termination arrangement with the Lake Shore Hospital Authority for the planned closure of Shands Lake Shore on June 30.
Franklin, Tenn.-based Neighborhood Health Systems became the largest for-profit hospital operator in the country in 2014 when it got Naples, Fla.-based Health Management Associates. Now, the business is selling off hospitals to pay down its debt.
As part of a turn-around plan took into location in 2016 to enhance its financial resources and reduce its heavy debt load, CHS divested 30 health centers in 2017. With the aid of proceeds from the hospital sales, CHS brought down its long-lasting financial obligation from $14.8 billion at the end of 2016 to $13.9 billion at the end of 2017.
2. CHS completed the sale of Northern Louisiana Medical Center in Ruston to Allegiance Health Management on July 1. With the sale total, CHS no longer runs any health centers in Louisiana..
3. CHS finished the sale of St. Cloud (Fla.) Regional Medical Center to Orlando Health on July 1. The organizations finished the deal about two months after getting in into a conclusive arrangement. Under the deal, CHS offered its bulk ownership in 84-bed St. Cloud Regional to Orlando Health, which held minority ownership for more than 15 years..
4. CHS announced June 25 that it signed a conclusive contract to sell 480-bed Bayfront Health St. Petersburg (Fla.) to Orlando Health..
5. CHS finished 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 on May 1, roughly 3 months after the parties participated in a conclusive arrangement. Under the agreement, CHS ended inpatient and nonemergency services at the 2 healthcare facilities prior to the offer closed.
CHS announced April 27 that it signed a definitive arrangement to offer two health centers in Texas. The company is selling 231-bed Abilene (Texas) Regional Medical Center and 188-bed Brownwood (Texas) Regional Medical Center to Abilene-based Hendrick Health System.
7. CHS announced April 20 that it signed a definitive contract to offer 171-bed San Angelo (Texas) Community Medical Center to Shannon Health System in San Angelo. The transaction requires approval by the Texas Health and Human Services Commission, and CHS stated the regulative review procedure is expected to conclude by the end of the 3rd quarter. In September, the Federal Trade Commission sent out a letter to Texas regulators advising them to block the sale of the healthcare facility..
To further minimize its debt, CHS is offering another group of medical facilities with combined earnings of $2 billion. The medical facility, owned by the Lake Shore Hospital Authority, closed less than two months after revealing plans to shut down. The medical facility had to borrow cash to maintain operations, and decreasing patient volume and monetary challenges resulted in losses that were unsustainable, the hospital said.The medical facility revealed plans to close after CHS, which operates the healthcare facility, entered into a settlement and termination contract with the Lake Shore Hospital Authority for the prepared closure of Shands Lake Shore on June 30. Under the contract, CHS ended inpatient and nonemergency services at the 2 medical facilities prior to the offer closed.
CHS announced April 27 that it signed a conclusive agreement to offer 2 hospitals in Texas.
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