Under the agreement, Orlando Health will assume the long-term lease and operations of the 480-bed hospital. The lease transfer requires approval by the St. Petersburg City Council, and the transaction is subject to regulatory approvals.
The transaction, expected to close by the end of the third quarter, is one of the divestitures discussed on CHS’ first quarter earnings call in late April. At that time, CHS said the divestitures that were in the works are expected to close before the fourth quarter and will mark the end of a portfolio rationalization strategy the company began nearly three years ago.
The hospital divestitures have helped CHS reduce its debt load. The company carried nearly $13.9 billion in long-term debt when it announced its divestiture plan at the end of 2017. CHS’ long-term debt totaled $13.5 billion as of March 31.
More articles on healthcare industry transactions:
Penn State Health to acquire hospital from Geisinger
Orlando Health, LHC Group to form joint venture
Advocate Aurora, Beaumont merger would create $17B system with 36 hospitals
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.