CHS finalizes sale of 3 Tennessee hospitals
Community Health Systems’ selling spree continues, this time in its home state in Tennessee, as the for-profit hospital giant finalized the sale of three hospitals to West Tennessee Healthcare, a public, not-for-profit system.
The three hospitals included in the sale were:
- 225-bed Tennova Healthcare Dyersburg Regional in Dyersburg
- 150-bed Tennova Healthcare Regional Jackson in Jackson
- 100-bed Tennova Healthcare Volunteer Martin in Martin
The transaction took effect June 1. The divestments had all been previously announced during the company’s first quarter 2018 earnings call.
West Tennessee Healthcare was able to complete the transaction after securing a $90 million loan from Goldman Sachs. The loan had been approved by the system’s board on May 29.
“I can’t express the amount of excitement that we have in being able to come together with those facilities as a team care patients all over West Tennessee,” Amy Garner, the system’s chief compliance officer, said according to WBBJ-TV. “It’s something I thought I would never see in my career and so we are very excited about that.”
Franklin, Tennessee-based CHS has more divestments planned even after selling off 30 hospitals in 2017. Financial results haven’t fully turned around: Its first quarter 2018 revenue dropped 17.8 percent compared to the same period last year, but on a same-hospital basis, revenue was up 1.6 percent. The company managed to narrow its operating loss to $25 million compared to $199 million in the first quarter of 2017.
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.