Community Health Systems divests S.C. hospital

Community Health Systems has signed an agreement to divest one of its eight South Carolina hospitals to Capella Healthcare. The Federal Trade Commission required the deal as part of its approval of Community's acquisition of Health Management Associates earlier this year.

Franklin, Tenn.-based Capella will purchase 116-bed Carolina Pines Regional Medical Center in Hartsville for undisclosed terms. Local physicians will continue to hold an ownership interest in the facility, according to a news release.

The FTC in January required the divestiture because Community's merger with HMA would have reduced the number of competitors in the county from three to two. Community also must divest 299-bed Gadsden (Ala.) Regional Medical Center to prevent a monopoly in that market.

Antitrust regulators still need to approve the deal. The transaction is expected to close in the fourth quarter.

Community, which has more than 200 hospitals in 29 states, said it does not expect the disposal to have a material impact on its financial results.

Carolina Pines becomes Capella's 14th hospital and its first in South Carolina.

Follow Beth Kutscher on Twitter: @MHbkutscher