CHS explores sale of its business

Ayla Ellison -

Franklin, Tenn.-based Community Health Systems is working with advisers to explore a variety of options with financial sponsors, including the possible sale of its business, sources with knowledge of the matter told Bloomberg.

The for-profit hospital operator said discussions are at a preliminary stage. "There can be no certainty that the exploration will result in any kind of transaction," said CHS.

The news comes after CHS saw earnings drop significantly in the second quarter of 2016. After writing down the value of its hospital assets, CHS ended the second quarter with a $1.4 billion loss from continuing operations, compared with a profit of $117 million in the same period of the year prior.

CHS said it doesn't expect to make further public comment regarding the options it's exploring. A CHS spokesman declined to comment on the matter to Bloomberg

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