Community Health Systems has finalized its second required hospital divestiture so that it could complete its acquisition of Health Management Associates.
Prime Healthcare Services, Ontario, Calif., will buy Riverview Regional Medical Center in Gadsden, Ala. and its related outpatient assets for an undisclosed amount.
The acquisition would mark Prime's entry into Alabama, giving it a total of 30 hospitals. The chain currently owns facilities in nine states but none in the Southeast.
The Federal Trade Commission required Franklin, Tenn.-based Community Health Systems to sell two of its facilities as part of FTC approval for the $3.9 billion Health Management Associates deal, which closed in January. The agency must still approve the sale to Prime and that transaction is expected to close early next year.
CHS had nine hospitals in Alabama, including the only other hospital in Gadsden, Gadsden Regional Medical Center, when it acquired HMA and added its two facilities in the state.
The system last month signed a deal to sell another problematic asset, 116-bed Carolina Pines Regional Medical Center in Hartsville, S.C., to Capella Healthcare. That deal is expected to close later this year.
Follow Beth Kutscher on Twitter: @MHbkutscher
