Community Health Systems Announces Definitive Agreement to Sell Two North Carolina Hospitals to Novant Health

Rhea-AI Summary

Community Health Systems, Inc. (NYSE: CYH) announced the signing of a definitive agreement to sell Lake Norman Regional Medical Center in Mooresville, NC, and Davis Regional Medical Center in Statesville, NC, to Novant Health for approximately $320 million. The sale includes a 123-bed acute care hospital and a facility transitioning to inpatient behavioral health. This transaction is expected to close later this year, pending regulatory approvals. These hospitals were mentioned as potential divestitures in the Company’s Q4 2022 earnings call.

Positive

• Sale of two hospitals for approximately $320 million enhances liquidity.

Negative

• Divestiture may indicate a strategic retreat from certain markets.

FRANKLIN, Tenn.--(BUSINESS WIRE)-- Community Health Systems, Inc. (NYSE: CYH) announced today that subsidiaries of the Company have signed a definitive agreement to sell 123-bed Lake Norman Regional Medical Center, an acute care hospital in Mooresville, NC, and Davis Regional Medical Center in Statesville, NC, which is in the process of transitioning from a general acute care hospital to an inpatient behavioral health hospital, and their associated assets, to subsidiaries of Novant Health for cash consideration of approximately $320 million.

The transaction is expected to close later this year, subject to customary regulatory approvals and closing conditions.

The hospitals included in this transaction are among the additional potential divestitures discussed on the Company’s fourth quarter and year-end 2022 earnings call.

About Community Health Systems, Inc.

Community Health Systems, Inc. is one of the nation’s largest healthcare companies. The Company's affiliates are leading providers of healthcare services, developing and operating healthcare delivery systems in 45 distinct markets across 16 states. CHS subsidiaries own or lease 79 affiliated hospitals with approximately 13,000 beds and operate more than 1,000 sites of care, including physician practices, urgent care centers, freestanding emergency departments, occupational medicine clinics, imaging centers, cancer centers and ambulatory surgery centers. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.” More information about the Company can be found on its website at www.chs.net.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230228006106/en/

Investor Contacts:

Kevin J. Hammons

President and Chief Financial Officer

615-465-7000

or

Shelly K. Schussele, CMA

Senior Director, Investor Relations

615-465-2732

or

Media Contact:

Rebecca Ayer Pitt

Vice President, Corporate Communications

615-465-2750

Source: Community Health Systems, Inc.

FAQ

What is the latest news about Community Health Systems (CYH)?

Community Health Systems announced a sale of two hospitals for approximately $320 million.

When will the sale of the hospitals by CYH close?

The transaction is expected to close later this year, subject to regulatory approvals.

How much did Community Health Systems sell the hospitals for?

The hospitals were sold for approximately $320 million.

Which hospitals were sold by Community Health Systems?

Lake Norman Regional Medical Center and Davis Regional Medical Center were sold.

What type of hospital is Davis Regional Medical Center transitioning to?

Davis Regional Medical Center is transitioning from a general acute care hospital to an inpatient behavioral health hospital.