Franklin, Tenn.-based Community Health Systems has signed a definitive agreement to sell its 80% ownership interest in two joint ventures — which own and operate Tennova Healthcare-Clarksville (Tenn.) — to Vanderbilt University Medical Center.
The $600 million deal, announced Oct. 30, includes the 270-bed hospital in Clarksville and ancillary businesses. The transaction is a continuation of CHS’ divestiture strategy aimed at reshaping its portfolio and reducing debt.
“We’re still pursuing some divestitures [and] we’re in some early conversations,” President and Interim CEO Kevin Hammons said during the company’s third-quarter earnings call on Oct. 24. “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.”
Nashville-based VUMC, which already owns a minority interest in the joint ventures, will assume full ownership upon closing. The transaction is expected to finalize in early 2026, pending customary regulatory approvals and closing conditions.
Financial terms of the deal were not disclosed.
In 2021, VUMC acquired Tennova Healthcare-Shelbyville and Tennova Healthcare-Harton in Tullahoma — as well as a minority ownership interest in Tennova Healthcare-Clarksville hospital — from CHS.
CHS currently operates 70 hospitals across 14 states, along with more than 1,000 sites of care.
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