Bayfront is one of several hospitals that CHS said it would sell as part of a years-long effort to shed about $1.6 billion in debt.
Debt-laden Community Health Systems, Inc. is selling its 480-bed Bayfront Health St. Petersburg to Orlando Health.
Financial terms were not disclosed.
Under a definitive agreement reached this week, Orlando Health will assume responsibility for the long-term lease and operations of the hospital. The lease transfer is subject to the consent of the St. Petersburg City Council, CHS said.
The deal is expected to close by September 30, subject to regulatory approvals.
For-profit, Franklin, Tennessee-based CHS Community Health Systems, Inc. owns, leases or operates 99 hospitals in 17 states, and after the sale of Bayfront St. Pete, the company will have 13 hospitals in Florida.
Private, not-for-profit Orlando Health is based in Orlando and operates six hospitals and a cancer center in south central Florida.
Bayfront was one of several hospitals that CHS said it would sell during the company's first quarter 2020 call as part of a years-long hospital sell-off to shed about $1.6 billion in debt.
CHS has been mired in debt since its ill-advised $7.6 billion acquisition of Florida-based hospital operator Health Management Associates, Inc. in 2014. CHS also shelled out $260 million in a settlement with the Department of Justice for alleged misconduct done by HMA prior to the acquisition.
CHS stock, which had traded for about $53 a share in 2015, was trading for $2.80 a share on Friday.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
Orlando Health will assume responsibility for the long-term lease and operations of the hospital.
The lease transfer is subject to the consent of the St. Petersburg City Council, CHS said.
The deal is expected to close by September 30, subject to regulatory approvals.
After the sale of Bayfront St. Pete, CHS will operate 13 hospitals in Florida.