St. Louis-based Ascension plans to acquire full ownership of Cedar Park (Texas) Medical Center, a 126-bed facility, for $460 million in cash.
Four things to know:
1. Franklin, Tenn.-based Community Health Systems has signed a definitive agreement to sell its 80% ownership stake in Cedar Park Regional to Ascension, which currently has a 20% ownership interest in the hospital.
2. Ascension Seton, a subsidiary of the health system that operates 13 hospitals and 222 care sites in Central Texas, will assume operations of Cedar Park Regional should the transaction be completed. “With full ownership, we can accelerate growth, streamline operations and introduce new services that meet the evolving needs of the community,” Ascension President Eduardo Conrado said in an April 15 news release shared with Becker’s.
3. The deal is expected to close late in the second quarter or early in the third quarter, subject to regulatory approvals and closing conditions.
4. The transaction is the latest in a series of hospital sales by CHS, as the for-profit system continues its divestiture strategy aimed at reducing debt. It also marks Ascension’s first planned acquisition following its recent spell of hospital divestitures as it reorganizes its portfolio.
