Community Health Systems Announces Definitive Agreement to Divest Eight Hospitals – Three in Florida, Three in Ohio & Two i...
February 16 2017 - 4:15PM
Business Wire
Community Health Systems, Inc. (NYSE:CYH) announced today that
subsidiaries of the Company have signed a definitive agreement to
sell eight hospitals and their associated assets to subsidiaries of
Steward Health Care LLC. Facilities included in the transaction are
119-bed Wuesthoff Health System-Melbourne in Melbourne, Fla.;
298-bed Wuesthoff Health System-Rockledge in Rockledge, Fla.;
154-bed Sebastian River Medical Center in Sebastian, Fla.;
ValleyCare Health System of Ohio, with 355-bed Northside Medical
Center in Youngstown, 311-bed Trumbull Memorial Hospital and 69-bed
Hillside Rehabilitation Hospital in Warren; 258-bed Sharon Regional
Health System in Sharon, Pa. and 254-bed Easton Hospital in Easton,
Pa.
The transaction is expected to close in the second quarter of
2017, subject to customary regulatory approvals and closing
conditions. The Company will apply proceeds of the transaction to
pay down debt.
Commenting on the announcement, Wayne T. Smith, chairman and
chief executive officer of Community Health Systems, Inc., said,
“This transaction is a significant step in our strategic work to
optimize our portfolio and operations for the future. These
hospitals play an important role in their communities and can
benefit from Steward Health Care’s community-based care model going
forward.”
The Company will provide an update on its divestiture activity
during its fourth quarter and year-end 2016 earnings call. The
conference call is scheduled to begin at 10:00 a.m. Central
time, 11:00 a.m. Eastern time, on Tuesday, February 21, 2017. A
live broadcast of the conference call will be available online at
www.chs.net.
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/20170216006096/en/
Community Health Systems, Inc.Investor Contacts:W. Larry
Cash, 615-465-7000President of Financial Services and Chief
Financial OfficerorRoss W. Comeaux, 615-465-7012Senior Director –
Investor RelationsorMedia Contact:Tomi Galin,
615-628-6607Senior Vice President, Corporate Communications,
Marketing and Public Affairs
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