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CHS to divest 3 hospitals in Texas, Florida

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Franklin, Tenn.-based Community Health Systems announced April 27 that it has signed definitive agreements to sell two hospitals in Texas and to divest its stake in a Florida hospital. 

CHS is selling 231-bed Abilene (Texas) Regional Medical Center and 188-bed Brownwood (Texas) Regional Medical Center to Hendrick Health System. As part of the proposed deal, Abilene-based Hendrick Health would work with the local hospital authority to secure assignment of the long-term lease of Brownwood Regional. 

The transaction requires approval by the Texas Health and Human Services Commission, and CHS said the regulatory review process is expected to conclude by the end of the third quarter. 

The company announced earlier this month that it entered an agreement to sell Angelo (Texas) Community Medical Center. That deal is expected to close by the end of the third quarter. 

In Florida, CHS signed a definitive agreement to sell its majority ownership interest in 84-bed St. Cloud Regional Medical Center to Orlando Health, which currently holds minority ownership interest. The transaction, subject to regulatory approvals, is expected to close this summer, CHS said. 

CHS, which operates 99 hospitals across the U.S., reported a net loss of $675 million on revenues of $13.2 billion in 2019. A year earlier, the company recorded a net loss of $788 million on revenues of $14.2 billion. 

CHS is scheduled to release its earnings for the first quarter of this year on April 28. 


More articles on healthcare industry transactions:
Verity continues hospital divestiture spree with $40M deal
Billionaire Dr. Patrick Soon-Shiong buys California hospital for $135M
7 ways COVID-19 could affect healthcare M&A

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