CHS continues hospital sell-off spree with deals in Louisiana, Tennessee

Franklin, Tenn.-based Community Health Systems is taking many steps, including divesting hospitals, to improve its finances and reduce its heavy debt load.

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As part of a 2016 turnaround plan, CHS announced it would sell off 30 hospitals in 2017. CHS completed the divestiture plan Nov. 1. To further reduce its debt, CHS said it intends to sell another group of hospitals with combined revenue of $2 billion.

CHS has already made progress toward that goal. The company has sold several hospitals this year, including five last week.

On the morning of June 1, the company announced it sold three Tennessee hospitals to Jackson-based West Tennessee Healthcare. Later that day, CHS said it divested 60-bed Byrd Regional Hospital in Leesville, La., to Allegiance Health Management in Shreveport, La., and sold 85-bed Tennova Healthcare-Jamestown (Tenn.) to West Palm Beach, Fla.-based Rennova Health.

CHS will use the proceeds from the transactions to reduce its long-term debt load, which totaled $13.86 billion as of March 31.

More articles on healthcare industry transactions:

HCA could soon own 53 hospitals in Texas
Cone Health, Randolph Health merger is off
CHS divests 3 Tennessee hospitals

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