Franklin, Tenn.-based Community Health Systems has completed two sales as part of its broader effort to reshape its portfolio and reduce debt through divestitures in select markets.
Vanderbilt buys CHS’ stake in Tennessee hospital
In one deal, the for-profit hospital operator completed the sale of its 80% ownership interest in Tennova Healthcare-Clarksville Hospital and the freestanding emergency room Tennova ER-Sango — operations in which Nashville, Tenn.-based Vanderbilt Health has held a 20% minority stake since 2021 — to Vanderbilt.
CHS signed a definitive agreement for the deal in October 2025, and completion of the $623 million transaction, before certain transaction expenses, was announced Feb. 2, according to a CHS news release. The transaction includes the 270-bed hospital in Clarksville, which will be renamed Vanderbilt Clarksville Hospital, as well as the freestanding Sango ER, which will be renamed Vanderbilt Emergency Sango, according to a Vanderbilt news release.
The deal also includes physician practice locations in Clarksville, Dover, Pleasant View and the Tiny Town area.
Vanderbilt Health said the acquisition marks its fourth regional hospital expansion. Vanderbilt Clarksville Hospital joins the organization’s network of regional medical centers, which includes Vanderbilt Wilson County Hospital in Lebanon, Vanderbilt Tullahoma-Harton Hospital in Coffee County and Vanderbilt Bedford Hospital in Shelbyville.
Vanderbilt Health said it will “hire substantially all” of the approximately 1,100 staff and more than 30 physicians currently employed at Vanderbilt Clarksville Hospital. Initial plans include increased staffing for emergency services, including the addition of pediatric emergency medicine specialists affiliated with Monroe Carell Jr. Children’s Hospital at Vanderbilt, along with expanded surgical specialty offerings.
CHS exits Pennsylvania with 3-hospital deal
On Feb. 1, CHS also completed the sale of its three Pennsylvania hospitals to Tenor Health Foundation for $33 million plus a $15 million promissory note from the buyer.
Under the deal, Tenor, a newly formed nonprofit, acquired Regional Hospital of Scranton (186 beds), Moses Taylor Hospital in Scranton (122 beds) and Wilkes-Barre General Hospital (369 beds).
CHS may receive additional cash in the months after closing, contingent upon collections from certain patient accounts during the first 90 days after the effective closing date, according to a Feb. 2 news release from the system.
With the sale, CHS exits Pennsylvania. The system attempted to sell the hospitals to WoodBridge Healthcare for $120 million in 2024, but the deal collapsed because WoodBridge was unable to satisfy the funding requirements.
Tenor was founded by CEO Radha Savitala, a healthcare attorney who led transactions for Orange, Calif.-based Prime Healthcare for more than 10 years and worked with senior executives on growth strategies. Tenor acquired Sharon (Pa.) Regional Hospital — formerly owned by Dallas-based Steward Health Care — in January 2025 and reopened the hospital in May.
CHS operates 65 affiliated hospitals with more than 9,000 beds and approximately 900 other sites of care across 13 states, according to its website.
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