Franklin, Tenn.-based Community Health Systems is continuing to reshape its hospital portfolio in 2025 through divestitures aimed at sharpening strategic focus, exiting non-core markets and reducing debt.
Seven hospitals are expected to change hands this year, with several deals already announced or completed. Further hospital sales are on the horizon as the health system explores additional transactions as part of its ongoing divestiture plan.
“We’re still pursuing some divestitures [and] we’re in some early conversations,” President and CEO Kevin Hammons said during the company’s third-quarter earnings call on Oct. 24. “We don’t know how far those will go, but certainly we’re continuing to get some inbound interest. We are in some more advanced discussions on a couple deals which we think could be announced even later this year.”
Four things to know:
1. CHS signed a definitive agreement in October to sell Commonwealth Health — a three-hospital system headquartered in Scranton, Pa. — to Tenor Health Foundation. The deal would see CHS exit the Pennsylvania market. CHS had previously planned to sell the hospitals to WoodBridge Healthcare for about $120 million but terminated that agreement in November. The sale to Tenor is contingent on the buyer securing funding. If finalized, the transaction is expected to close in the fourth quarter, pending customary regulatory approvals.
2. CHS on April 1 sold Lake Norman Regional Medical Center in Mooresville, N.C., to Durham, N.C.-based Duke University Health System for $284 million. The 123-bed hospital was renamed Duke Health Lake Norman Hospital.
3. CHS sold ShorePoint Health-Port Charlotte (Fla.) and certain assets of ShorePoint Health-Punta Gorda (Fla.) to Altamonte Springs, Fla.-based AdventHealth for $260 million, effective March 1.
4. CHS sold Merit Health Biloxi (Miss.), a 153-bed hospital, to Gulfport, Miss.-based Memorial Health System, effective Jan. 31. With the acquisition of Merit Health Biloxi, Memoria Health grew to a three-hospital system.
