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CHS agrees to sell New Jersey hospital facing closure

Franklin, Tenn.-based Community Health Systems has agreed to sell Salem, N.J.-based Memorial Hospital of Salem County, according to The Philadelphia Inquirer.

CHS acquired the 126-bed hospital in 2002 for $35 million. After operating the hospital for more than a decade, CHS entered an agreement to sell the hospital to Ontario, Calif.-based Prime Healthcare Foundation for $15 million. That deal fell through in May 2017.

Still looking to offload the hospital, CHS recently agreed to sell it to Salem County Hospital Corp. for $3 million, which includes reimbursement for cash on hand, according to the report.

Salem County Hospital Corp. is a newly formed nonprofit that will be run by Bloomfield, N.J.-based Community Healthcare Associates. The $3 million is expected to come from a grant started with money from the sale of the hospital in 2002. However, if the grant doesn't provide the money, Community Healthcare Associates is expected to supply the funds.

Outside of the current sale proposal, the only option is to close the hospital, according to the application for approval of the deal. That "was considered to be an unacceptable option in view of the absence of available acute care services in the area and the offer" from the nonprofit.

New Jersey's State Health Planning Board will hold a public meeting Nov. 8 to discuss the sale of Memorial Hospital of Salem County.

More articles on healthcare industry transactions:

HCA merges 2 Florida hospitals
Private equity firm completes $9.9B acquisition of Envision
CHS divests 2 Arkansas hospitals

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