Struggling Community Health Systems late last week agreed to sell its two-hospital system in Spokane, Wash., for $425 million.
MultiCare Health System is buying Rockwood Health System, which includes Deaconess Hospital in Spokane, Valley Hospital in Spokane Valley and the multispecialty Rockwood Clinic. The companies said the price is subject to certain unidentified adjustments.
“Rockwood Health System is a strong healthcare system, and we have carefully considered how to position it for future success,” said CHS CEO Wayne Smith. “The hospitals and clinic will benefit from joining a growing regional health system that is expanding its network across the Pacific Northwest.”
Not-for-profit MultiCare owns five hospitals in the Tacoma area, including Tacoma General Hospital and MultiCare Good Samaritan. The system has annual revenue of about $2 billion, while the CHS system in Spokane has revenue of $525 million, MultiCare CEO Bill Robertson said. The deal is expected to close in the first quarter of 2017 and is subject to regulatory approvals.
CHS is the nation's second-largest, investor-owned hospital company with 158 hospitals.
Earlier this month, CHS said it was trying to sell 17 hospitals, its home-care business and other real estate to reduce a crushing $15 billion debt. CHS said it would look to divest hospitals that were outside of its half-dozen or so core markets where it has multiple hospitals fed by clinics and ambulatory centers.