Community Health Systems, Franklin, Tenn., said that it has reached a definitive agreement to sell nine hospitals to Capella Healthcare, Franklin, for $315 million. Both companies expect the deal to close in the first quarter of 2008, perhaps as soon as Jan. 31, according to Community. The deal will require federal antitrust clearance and is subject to other closing conditions.
For Community, the sale is the biggest divestiture that it has made since it acquired Triad Hospitals, Plano, Texas, for $6.97 billion in July. The nine hospitals include four former Triad facilities and five that Community operated before the Triad acquisition. Community divested its hospital in Plaquemine, La., in September and three other deals are in the works.
For Capella, the deal would nearly triple its hospital portfolio. The privately held company owns five hospitals in three states and was founded in April 2005.
The hospitals involved in the deal are: 70-bed Woodland Medical Center, Cullman, Ala.; 120-bed Parkway Medical Center, Decatur, Ala.; 119-bed Hartselle (Ala.) Medical Center; 52-bed Jacksonville (Ala.) Medical Center; 181-bed National Park Medical Center, Hot Springs, Ark.; 154-bed St. Mary’s Regional Medical Center, Russellville, Ark.; 108-bed Mineral Area Regional Medical Center, Farmington, Mo.; 67-bed Willamette Valley Medical Center, McMinnville, Ore.; and 44-bed White County Medical Center, Sparta, Tenn. Four were owned by Triad and five were Community facilities prior to the Triad deal. -- by Vince Galloro
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