Community Health Systems last week bought its biggest hospital yet, spending $50 million to buy 194-bed Elliott White Springs Memorial Hospital in Lancaster, S.C.
To pay for the transaction and repay debt in connection with last month's acquisition of Hallmark Healthcare Corp., Houston-based Community last week also filed a registration statement to sell $89.7 million in additional stock.
Part of the proceeds will be used to repay debt incurred when Community repurchased $72.7 million in subordinated bonds issued by Atlanta-based Hallmark.
The acquisition of Elliott White fits in with Community's chain of 38 suburban, small-town and rural hospitals in 16 states. Formerly a not-for-profit hospital, the facility is a sole community provider in an area with 64,000 residents. It's Community's first hospital in South Carolina.
For its fiscal year ended Sept. 30, Elliott White reported earnings of $8.2 million before interest, taxes, depreciation and amortization. Revenues totaled $42.2 million.