Community Health Systems (CHS) is now working on seven transactions to sell 17 hospitals, its home-care business and other real estate. The developing divestitures have combined revenue of about $2 billion and should yield net proceeds of about $1.2 billion. Some of the deals could be announced this quarter with others revealed by the second half of next year. CHS has been divesting assets to reduce a crushing debt of $15 billion, among the highest for investor-owned hospital companies nationally. The company also is bleeding red ink, missing analyst expectations in the third quarter with a net loss of $79 million compared with net income of $52 million in the prior-year quarter. CHS’ 159 hospitals also saw admissions during the quarter decline 2% on a same-hospital basis.
With its high debt level, CHS is exploring hospital divestitures, including the possible sale of the entire company. The 17 hospitals for sale are in addition to four rural hospitals that CHS has already agreed to sell and the April spinoff of 38 small and rural hospitals into a separate company, Quorum Health Corp. The rural hospital operator has struggled to digest its $7.6 billion acquisition of Health Management Associates in 2014. Of the four hospitals recently sold, three are in Mississippi and one in Florida. The hospitals, all part of the original HMA deal, were sold to not-for-profit Curae Health of Clinton, Tenn. Terms were not disclosed.
This was reported by Modern Healthcare on November 2, 2016.