The previously announced sales are part of CHS's ongoing divestiture strategy to consolidate operations and reduce debt.
Debt-laden Community Health Systems will sell its two-hospital Mary Black Health System to Spartanburg Regional Healthcare System in South Carolina in a deal that is expected to be finalized by year's end, the two companies announced.
Financial terms were not disclosed.
The 207-bed Mary Black Health System – Spartanburg, and 125-bed Mary Black Health System – Gaffney, were among the previously announced divestitures discussed by CHS earlier this year.
The sale includes all physician clinics and outpatient services attached to the two hospitals, which will become part of Spartanburg Regional Healthcare System when the deal is finalized.
CHS has sold or announced the pending sale of 12 hospitals so far in 2018. The Franklin, Tennessee-based for-profit hospital chain has been struggling since its ill-advised $7.6 billion acquisition of Health Management Associates in 2013.
In 2017, CHS sold 30 hospitals that CHS executives said were low performing. However, a report this month by Axios challenges that assertion.
The four-hospital, nonprofit Spartanburg Regional, one of the largest health systems in South Carolina, includes three hospitals and serves an 11-county region.
When the sale is complete, CHS will run four hospitals in South Carolina.
On October 1, CHS completed the sale of 238-bed AllianceHealth Deaconess hospital in Oklahoma City to INTEGRIS Health. CHS Now runs seven hospitals in Oklahoma.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
CHS has put 12 hospitals up for sale in 2018, in addition to the 30 hospitals sold in 2017.
The Franklin, Tennessee-based for-profit hospital chain is selling assets to reduce its debts.
The South Carolina sales are expected to be finalized by the end of the year.