Community Health Systems, Franklin, Tenn., intends to buy 26-bed Roswell (N.M.) Regional Hospital, according to a news release, giving the chain both of the general acute-care hospitals in Roswell.
CHS aims to buy Roswell Regional
A Community subsidiary has a definitive agreement in place to buy Roswell Regional. The company hopes to close the deal in the first quarter of 2012 subject to closing conditions, including regulatory approvals. Terms were not disclosed. Investor-owned Roswell Regional announced its exclusive negotiations with Community in September.
Community already owns six hospitals in New Mexico, including 162-bed Eastern New Mexico Medical Center in Roswell. As a result of a whistleblower complaint, the U.S. Justice Department has been investigating claims submitted by three of those hospitals, including Community's Roswell hospital, since 2007. The Justice Department joined the whistle-blower's False Claims Act case in 2009, after alleging in 2008 that the hospitals submitted false claims for indigent care amounting to $27.5 million. The discovery phase of the case is nearly complete, and Community expects to file a motion for summary judgment, Wayne Smith, chairman, president and CEO, said last month.
Community owns, leases or operates 131 hospitals in 29 states.
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