Speaking Nov. 12 at the UBS Global Healthcare Conference, Mr. Hammons said the system has a few deals in the works that they expect to announce before the end of the year and close in the first quarter of 2025. Those deals are expected to get the system up to its $1 billion divestiture goal.
“We still have some inbound interest coming in, and we continue to evaluate that is, as our EBITDA improves, as our margin improves, as we continue to give ourselves some runway on our debt, I think it gives us the opportunity to be more selective in terms of divestitures and opportunistic around what we divest and what we don’t,” he said.
He added that while there is likely to be more sales in the future, the system will “probably pivot to looking at some acquisition opportunities as well.”
Mr. Hammons noted that the system’s Tucson, Ariz.-based Northwest Urgent Care subsidiary signed a definitive agreement in September to acquire 10 urgent care centers in the state from Carbon Health, a primary and urgent care provider headquartered in San Francisco. He said that while it is a small deal, it’s still back to “being a little more offensive in nature.”
“I would hope that at some point, we’re looking at acquiring some acute facilities as well,” he said.
CHS will continue to look at expanding its ASC footprint as well. Mr. Hammons said they have ASCs in about 85% of its markets and are looking to add between four to eight facilities per year “where it makes sense.”
“We are still probably looking at expanding our networks and looking around the perimeters of our networks and [asking] ‘can we expand our reach with some of those access points?’ I think that’s the opportunity for us going forward,” he said.
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