CHS will sell a 60-bed hospital, Byrd Regional Hospital in Leesville, La., to Allegiance Health Management. The Franklin-based system expects the deal to close in the first half of 2018.
Activist investors are taking more interest in buying shares of healthcare companies and trying to influence management.
Activist investors took varied approaches with the three largest hospital chains.
Community Health Systems plans to sell its 85-bed hospital in Jamestown, Tenn., to Rennova Health. The deal is part of a broader planned sell-off by CHS as it looks to reduce its debt load.
The most mergers ever were recorded in 2017 by financial firm Kaufman Hall, which began tracking deals in 2000. Even with that growth, more financially strong systems are attracting interest in being acquired by a larger or better-positioned system.
A Tennessee judge on Friday declined to dismiss a lawsuit brought by Community Health Systems and its Fort Wayne, Ind., subsidiary Lutheran Health Network against Lutheran's former CEO Brian Bauer.
Chinese billionaire Tianqiao Chen has increased his stake in Community Health Systems to 24%, but has not indicated that he or his company, Shanda Group, will take a more active role in the company's turnaround.
The J.P. Morgan Healthcare Conference continued in San Francisco on Wednesday as Community Health Systems provided few details on its continuing divestment plans, and Universal Health Systems blamed nurse and psychiatrist shortages for its lagging growth.
A federal appeals court has revived an $891 million securities fraud lawsuit against Community Health Systems that alleged the company misled investors on its financial health.
The purchases, while relatively small, were done at bargain basement prices below $4 a share.
Community Health Systems will sell its 120-bed hospital in Dade City, Fla., to Adventist Health System, as it previously said that it would.
Saba Capital Management's purchase of 6.8% of Community Health Systems' shares preceded a sharp fall in its share price.