CHS, West Tennessee Healthcare Finalize 3 Hospital Sale

The Franklin, TN-based for-profit hospital chain continues to unload hospitals in its ongoing effort to reduce debt.

Community Health Systems, Inc. this week finalized the previously announced sale of 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 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.
   
• The WTH 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.
   
• When the deal was announced in March, WTH CEO James E. Ross called the acquisition "consistent with our stated mission to improve the health and well-being of the communities we serve while providing exceptional and compassionate care."
   
• The Tennova hospitals were acquired and rebranded by CHS in 2014 when it bought out HMA. With the WTH sell-off, Tennova will operate 12 hospitals across Tennessee.