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CHS sells 2 hospitals for $425M as part of debt-reduction effort

Franklin, Tenn.-based Community Health Systems has signed a definitive agreement to sell Spokane, Wash.-based Rockwood Health System to Tacoma, Wash.-based MultiCare for $425 million.

Rockwood Health System includes two hospitals: 388-bed Deaconess Hospital in Spokane and 123-bed Valley Hospital in Spokane Valley, Wash. The system also includes a multi-specialty clinic.

This deal is one of seven divestiture transactions CHS has in the works. During a third-quarter earnings call, CHS Chairman and CEO Wayne T. Smith said the company is working on selling 17 hospitals, as well as home care and nonhospital real estate, to further reduce its debt.

Regarding the Rockwood Health transaction, Mr. Smith said, "The hospitals and clinic will benefit from joining a growing regional health system that is expanding its network across the Pacific Northwest."

The transaction, which is subject to customary regulatory approvals, is expected to close in the first quarter of 2017.

More articles on healthcare industry transactions:

WellCare Health Plans to buy Universal American for $600M
Beth Israel, Lahey back in merger talks for the 4th time


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