Community Health Systems Completes Divestiture of Hospital Located in Oak Hill, West Virginia

Rhea-AI Summary

Community Health Systems (NYSE: CYH) announced the divestiture of Plateau Medical Center in Oak Hill, West Virginia for approximately $92 million, effective April 1, 2023. This transaction includes the hospital's assets, physician clinic operations, and outpatient services, and is part of a broader strategy discussed during the Company’s fourth quarter and year-end 2022 earnings call. Community Health Systems continues to operate 78 hospitals and over 1,000 sites of care across multiple states.

Positive

• Divestiture of Plateau Medical Center for $92 million improves cash flow.
• Transaction aligns with strategic plan for potential future divestitures.

Negative

• None.

FRANKLIN, Tenn.--(BUSINESS WIRE)-- Community Health Systems, Inc. (NYSE: CYH) announced today that affiliates of the Company have completed the divestiture of 25-bed Plateau Medical Center in Oak Hill, West Virginia, along with its respective assets, physician clinic operations and outpatient services to affiliates of Vandalia Health for cash consideration of approximately $92 million. The transaction is effective April 1, 2023.

The divestiture of this hospital is 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 44 distinct markets across 15 states. The Company’s subsidiaries own or lease 78 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.” The Company’s headquarters are located in Franklin, Tennessee, a suburb south of Nashville. 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/20230403005110/en/

Investor Contacts:

Kevin J. Hammons

President and Chief Financial Officer

615-465-7000

or

Shelly K. Schussele

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 recent divestiture by Community Health Systems?

Community Health Systems divested Plateau Medical Center in Oak Hill, West Virginia, for approximately $92 million.

When did Community Health Systems complete the divestiture of Plateau Medical Center?

The divestiture was completed on April 1, 2023.

How much did Community Health Systems receive from the Plateau Medical Center sale?

Community Health Systems received approximately $92 million from the sale.

What assets were included in the Plateau Medical Center divestiture?

The divestiture included the hospital’s assets, physician clinic operations, and outpatient services.

Is the divestiture of Plateau Medical Center part of a larger strategy for Community Health Systems?

Yes, this sale is part of a potential series of divestitures discussed during the company’s earnings call.