Community Health Systems announced the sale of three Tennessee hospitals to West Tennessee Healthcare, a public health system.
Modern Healthcare incorrectly reported that Wellington had sold the entirety of its stake in CHS, when it did not own any common shares in the hospital chain, stemming from a mistake it corrected in an SEC filing.
Community Health Systems announced Thursday it has hired a number of financial advisory firms, including Lazard, to help the Franklin, Tenn.-based chain address its $4.8 billion in debt maturing in 2019 and 2020.
Community Health Systems' stock price sank 11% Tuesday and Wednesday following a report that the Franklin, Tenn.-based hospital chain hired Lazard to help restructure its debt.
Community Health Systems' stock price fell 17% Wednesday following the previous day's release of results for 2017 that include a $2 billion fourth-quarter net loss.
Community Health Systems reported a $2 billion net loss in the fourth quarter of 2017, significantly wider than its $202 million net loss at the same time in 2016.
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.