Franklin, Tenn.-based Community Health Systems on April 1 sold Crestwood Medical Center — a 180-bed hospital in Huntsville, Ala. — to Huntsville Hospital Health System for $459 million.
Six things to know:
1. The deal includes all of the assets tied to the 180-bed hospital, including its associated outpatient centers, practices and a freestanding emergency department in Harvest, Ala.
2. The transaction is one of multiple divestitures CHS has completed or has lined up as the for-profit health system reshapes its portfolio, improves its margins and trims its debt.
3. Huntsville is growing rapidly with a nearly 16% population increase in the last five years, according to Huntsville Hospital Health System. “Our community wants and deserves options for more locally coordinated services and care. Acquiring Crestwood allows us to coordinate and align healthcare resources across the community,” Jeff Samz, president and CEO of the health system, said in a Jan. 20 news release.
4. Crestwood Medical Center will continue operating under its name and identity, including its colors and logo. The health system said in an April 1 news release that there are no planned changes to services or operations.
5. Early priorities for integration and investment in the hospital include:
- Upgrading equipment and technology to improve care delivery.
- Optimizing use of existing hospital space, including patient rooms.
- Enhancing nurse compensation to support recruitment and retention.
- Aligning care across hospitals to ensure appropriate care in the right setting.
- Implementing a single EHR to improve continuity and access to patient information.
6. CHS now operates 64 hospitals across 13 states, including five in Alabama, according to its website. Huntsville Hospital Health System now operates 15 hospitals.
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