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CHS sells controlling interest in home health business to drive down debt

Franklin, Tenn.-based Community Health Systems has completed the sale of a majority interest in CHS Home Health to Louisville, Ky.-based Almost Family, a provider of home health nursing services.

CHS announced plans in October to sell a controlling interest in its home health business to Almost Family. Under the agreement, Almost Family will pay $128 million, subject to a working capital adjustment, for an 80 percent equity interest in CHS Home Health.

The home health deal is one of several transactions CHS has in the works. During a third-quarter earnings call in November, CHS Chairman and CEO Wayne T. Smith said the company was working on seven divestiture transactions.

CHS released details of two more of its planned transactions in late 2016. In November, the company signed a $425 million definitive agreement to sell Spokane, Wash.-based Rockwood Health System to Tacoma, Wash.-based MultiCare. That transaction is expected to close in the first quarter of 2017. In December, CHS signed a definitive agreement to sell Yakima (Wash.) Regional Medical Center & Cardiac Center and Toppenish (Wash.) Community Hospital to Sunnyside (Wash.) Community Hospital & Clinics for approximately $45 million. That deal is expected to close in the second quarter of this year.

CHS will use the net proceeds of the sale of its home health division and the hospitals to pay down its debts.

More articles on healthcare industry transactions:

UHS closes $464M deal for 81 UK behavioral health facilities
Quorum Health divests Georgia hospital
Pocono Health System merges with Lehigh Valley Health Network, transitions leadership

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