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Ahead of Q1 Earnings Report, CHS Agrees to Sell 3 Hospitals

Analysis  |  By Jack O'Brien  
   April 28, 2020

Last week, CHS agreed to sell San Angelo Community Medical Center to Shannon Health System.

Community Health Systems, Inc. (CHS) agreed to sell three hospitals Monday afternoon, ahead of the release of Q1 2020 earnings report Tuesday afternoon.

The company agreed to sell two hospitals in Texas to Hendrick Health System and one hospital in Florida to Orlando Health.

All three hospital sales are among the planned divestitures that CHS announced during its Q4 2019 earnings call.

CHS will release its Q1 2020 earnings report after the markets close Tuesday afternoon.

The most recent transactions came less than three weeks after CHS executives donated $1.5 million to CHS Cares Fund, an employee charity fund, amid the ongoing coronavirus disease 2019 (COVID-19) pandemic.

Related: Community Health System Executives Donate $1.5M to Employee Charity During Pandemic

CHS stated that it expects the sale of St. Cloud Regional Medical Center, an 84-bed hospital in St. Cloud, Florida, to close this summer.

As part of the deal in the Lone Star State, CHS has entered into a definitive agreement to sell Abilene Regional Medical Center, a 231-bed hospital, and Brownwood Regional Medical Center, a 188-bed hospital.

Just last week, CHS agreed to sell another Texas hospital, San Angelo Community Medical Center, to Shannon Health System.

As with the San Angelo transaction, CHS plans to apply for a Certificate of Public Advantage (COPA) in the state of Texas, which will require review by approval by state regulators.

Related: CHS to Sell Texas Hospital to Shannon Health System

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.


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