Private equity firm Apollo Global Management is in discussions to acquire the assets of Franklin, Tenn.-based Community Health Systems, people familiar with the matter told Reuters.
That news comes after CHS said Monday it is exploring options with "financial sponsors," which it didn't name, and other alternatives. Sources told Bloomberg the for-profit hospital operator is exploring the possible sale of its business.
Apollo's interest in CHS comes as the private equity firm is seeking to expand RegionalCare Hospital Partners, its Brentwood, Tenn.-based portfolio company, sources told Reuters. In May, RegionalCare significantly expanded its scale with the acquisition of Franklin, Tenn.-based Capella Healthcare.
In addition to Apollo, sources told Reuters some real estate investment trusts are also eyeing CHS' assets.
On Monday, CHS said all discussions are at a preliminary stage, and there is no certainty the talks will result in any kind of transaction.
CHS owns, leases or operates 158 hospitals across the U.S. The company has a market capitalization of $1.3 billion and total debt of more than $15 billion, according to Reuters.
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