Public, not-for-profit West Tennessee Healthcare will acquire CHS's Tennova Healthcare subsidiary hospitals in Jackson, Dyersburg and Martin in a deal with an value estimated at $67 million.
Community Health Systems, Inc. continues to unload hospitals in its ongoing effort to reduce debt.
The Franklin, TN-based for-profit hospital chain announced that it would sell three hospitals in its Tennova Healthcare subsidiary to West Tennessee Healthcare, a Jackson-based public, not-for-profit health system.
The three hospitals are: 225-bed Tennova Healthcare Dyersburg Regional; 150-bed Tennova Healthcare Regional Jackson; and 100-bed Tennova Healthcare Volunteer Martin.
Financial terms were not disclosed, but local media estimated the value of the deal at $67 million.
The deal includes all physician clinics and outpatient services associated with the three hospitals, which will also become part of WTH’s 18-county network of medical centers and outpatient services.
WTH CEO James E. Ross called the acquisition is good news for consumers, employers, physicians and future patients.
"This transaction is consistent with our stated mission to improve the health and well-being of the communities we serve while providing exceptional and compassionate care," Ross said in a media release. "It will enable us to provide expanded access to quality healthcare."
CHS said in a media release that the three hospitals are among the planned divestitures discussed on the company’s fourth quarter 2017 earnings call. CHS has been working to reduce the debt burden it accrued with the 2014 acquisition of Naples, FL-based Health Management Associates.
When the deal is finalized this summer, WTH will employ more than 7,000 people and operate seven hospitals across the region.
The marks the fourth divestiture of a Tennova hospital for CHS this year.
The Tennova hospitals were acquired and rebranded by CHS in 2014 when it bought out HMA. After the WTH sell-off, Tennova will operate 12 hospitals across Tennessee.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.