Community Health Services, Franklin, Tenn., has signed a nonbinding letter of intent to acquire Empire Health Services, a two-hospital system based in Spokane, Wash., Empire said. No terms were disclosed, but Empire said that the sales proceeds would pay off its debt and provide funding to start a local healthcare foundation.
The not-for-profit system said it has managed to turnaround poor financial performance in the past three years, but it is not able to meet the long-term financial needs of the system while remaining independent. Community was chosen after Empire officials visited two other not-for-profit hospitals that Community acquired in Pennsylvania and South Carolina, Empire added.
A Community spokeswoman declined to comment. Community owns or operates 80 hospitals in 23 states, and is slated to acquire Triad Hospitals, Plano, Texas, for $6.8 billion in cash and debt during the third quarter. Closing the purchase of Triad would add another 53 hospitals, plus one hospital that is under construction, to Communitys portfolio. -- by Vince Galloro