The organization could make more divestitures as it works to regain its financial stability.
Community Health Systems, a Franklin, Tennessee-based healthcare provider with net operating revenues of $12.2 billion, has completed the $92 million sale of 25-bed Plateau Medical Center in Oak Hill, West Virginia.
The sale to Vandalia Health—a new West Virginia-based healthcare system formed following the 2022 merger of Mon Health System and Charleston Area Medical Center Health System—included assets such as physician clinic operations and outpatient services.
Community Health Systems announced plans to make divestitures during its fourth quarter and year-end 2022 earnings call. The organization had reported lackluster quarterly and yearly results back in February.
The financial dip was due to labor costs, and lower operating revenue which could be linked to payer changes and lower inpatient volumes, the organization said in the earnings release. Other challenges impacting the organization’s finances included negative macroeconomic conditions, inflationary pressures, increasing expenses, high-interest rates, and supply chain shortages and disruptions.
Amanda Schiavo is the Finance Editor for HealthLeaders.