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For-profit hospital M&A update: 12 deals involving CHS, HCA and Quorum

Three for-profit hospital operators entered into several transactions in recent months. Some of the companies are selling facilities to strengthen their hospital portfolios, while others are exploring ways to expand their reach.

Below is a breakdown of the transactions the for-profit hospital companies have entered into since Jan. 1. 

Community Health Systems

Jan. 1: Franklin, Tenn.-based Community Health Systems completed the sale of its three Virginia hospitals on Jan. 1, roughly two months after entering into a definitive agreement with Cincinnati-based Bon Secours Mercy Health. The following hospitals were included in the transaction: 300-bed Southside Regional Medical Center in Petersburg, 105-bed Southampton Memorial Hospital in Franklin and 80-bed Southern Virginia Medical Center in Emporia.

March 18: CHS entered into a definitive agreement to sell 130-bed Northern Louisiana Medical Center in Ruston, to Allegiance Health Management. Northern Louisiana Medical Center is CHS' only hospital in Louisiana. 

April 20: CHS announced it signed a definitive agreement to sell 171-bed San Angelo (Texas) Community Medical Center to Shannon Health System in San Angelo. 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. 

April 27: CHS announced it signed a definitive agreement to sell two hospitals in Texas. The company is selling 231-bed Abilene (Texas) Regional Medical Center and 188-bed Brownwood (Texas) Regional Medical Center to Abilene-based Hendrick Health System. 

April 27: CHS announced it is selling its majority ownership interest in 84-bed St. Cloud (Fla.) Regional Medical Center to Orlando Health, which currently holds minority ownership interest.

May 1: CHS completed the divestiture of 49-bed Shands Starke (Fla.) Regional Medical Center and 25-bed Shands Live Oak (Fla.) Regional Medical Center to Nashville, Tenn.-based HCA Healthcare, roughly three months after the parties entered into a definitive agreement. Under the agreement, CHS ended inpatient and non-emergency services at the two hospitals before the deal closed.

HCA Healthcare

Jan. 7: Nashville, Tenn.-based HCA Healthcare announced it acquired a majority stake in Galen College of Nursing, a multistate nursing school. Galen and HCA will work together to provide students with access to nursing education at five campuses and through online courses.

Jan. 10: HCA announced it acquired Valify, a Frisco, Texas-based company that offers a web-based platform to help healthcare organizations identify opportunities to cut costs. HCA said it will use Valify's analytics and benchmarking tools to identify and pursue opportunities to reduce the cost of providing healthcare services.

March 1: HCA announced it completed the acquisition of Frisbie Memorial Hospital, a 112-bed hospital in Rochester, N.H. Frisbie Memorial is HCA's third facility in New Hampshire. 

May 1: HCA acquired 49-bed Shands Starke (Fla.) Regional Medical Center and 25-bed Shands Live Oak (Fla.) Regional Medical Center from CHS. HCA is operating the two facilities as off-campus emergency departments of Lake City (Fla.) Medical Center and North Florida Regional Medical Center in Gainesville. 

Quorum Health 

March 31: Brentwood, Tenn.-based Quorum Health sold 45-bed Henderson County Community Hospital in Lexington, Tenn., and its affiliated facilities. The company said proceeds from the sale totaled $1 million. 

April: SBJ Groups said it signed an agreement to purchase 133-bed Galesburg (Ill.) Cottage Hospital from Quorum. The transaction is expected to be finalized by May 31. 

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