Community Health Systems Announces Definitive Agreement to Divest Spokane, Washington Health System
November 17 2016 - 8:15PM
Business Wire
Community Health Systems, Inc. (NYSE:CYH) announced today that
subsidiaries of the Company have signed a definitive agreement to
sell Rockwood Health System and its associated assets to MultiCare
Health System for $425 million, subject to certain adjustments.
Facilities included in the transaction include 388-bed Deaconess
Hospital in Spokane, 123-bed Valley Hospital in Spokane Valley and
the multi-specialty Rockwood Clinic, all in Washington.
Commenting on the announcement, Wayne T. Smith, chairman and
chief executive officer of Community Health Systems, Inc., said,
“Rockwood Health System is a strong healthcare system, and we have
carefully considered how to position it for future success. The
hospitals and clinic will benefit from joining a growing regional
health system that is expanding its network across the Pacific
Northwest.”
The transaction is expected to close in the first quarter of
2017, subject to customary regulatory approvals and closing
conditions. This transaction is one of the seven transactions
discussed on the Company’s third quarter 2016 earnings call. The
Company will apply proceeds of the transaction to pay down
debt.
About Community Health Systems, Inc.
Community Health Systems, Inc. is one of the largest publicly
traded hospital companies in the United States and a leading
operator of general acute care hospitals in communities across the
country. The Company, through its subsidiaries, owns, leases or
operates 158 affiliated hospitals in 22 states with an aggregate of
nearly 27,000 licensed beds. The Company’s headquarters are located
in Franklin, Tennessee, a suburb south of Nashville. 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.
Forward-Looking Statements
Statements contained in this news release
regarding potential transactions, operating results, and other
events are forward-looking statements that involve risk and
uncertainties. Actual future events or results may differ
materially from these statements. Readers are referred to the
documents filed by Community Health Systems, Inc. with
the Securities and Exchange Commission, including the
Company’s annual report on Form 10-K, current reports on Form 8-K
and quarterly reports on Form 10-Q. These filings identify
important risk factors and other uncertainties that could cause
actual results to differ from those contained in the
forward-looking statements. The Company undertakes no obligation to
revise or update any forward-looking statements, or to make any
other forward-looking statements, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20161117006470/en/
Community Health Systems, Inc.Investor Contact:W. Larry
Cash, 615-465-7000President of Financial Services and Chief
Financial OfficerorMedia Contact:Tomi Galin,
615-628-6607Senior Vice President, Corporate Communications,
Marketing and Public Affairs
Community Health Systems (NYSE:CYH)
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