The sale of the 171-bed hospital is among the planned divestitures that CHS announced during its Q4 2019 earnings call.
Community Health Systems, Inc. (CHS) has entered into a definitive agreement to sell San Angelo Community Medical Center to Shannon Health System, the company announced Monday afternoon.
CHS and Shannon plan to apply for a Certificate of Public Advantage (COPA) in the state of Texas, which will require review by approval by state regulators. CHS expects this review process to conclude by the end of Q3 2020.
According to the Milbank Memorial Fund, the COPA acts as a "state-monitored monopoly—or a public utility model of healthcare delivery."
The sale of the 171-bed hospital based in San Angelo, Texas is among the planned divestitures that CHS announced during its Q4 2019 earnings call.
Related: CHS Posts $373M Net Loss in Q4, Full Year Revenues Dip 6.7%
The move came less than two 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
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.