Community Health Systems has agreed to sell eight hospitals to subsidiaries of Steward Health Care System in its single biggest divestiture package to date. Terms were not immediately disclosed.
Three of the hospitals are in Florida, three in Ohio and two in Pennsylvania.
The eight facilities double the number of hospitals that struggling CHS has agreed to sell since it began restructuring last summer by selling assets to stanch operating losses and reduce a $15 billion debt load.
Steward, a growing for-profit system based in Boston, has agreed to buy
119-bed Wuesthoff Health System-Melbourne (Fla.); 298-bed Wuesthoff Health System-Rockledge (Fla.); 154-bed Sebastian River Medical Center in Sebastian, Fla.; 355-bed Northside Medical Center in Youngstown, Ohio; 311-bed Trumbull Memorial Hospital and 69-bed Hillside Rehabilitation Hospital, both in Warren, Ohio; 258-bed Sharon (Pa.) Regional Health System; and 254-bed Easton (Pa.) Hospital.
The transaction is expected to close in the second quarter of 2017 subject to regulatory approvals. Franklin, Tenn.-based CHS plans to use the proceeds to pay down debt, the company said. —Dave Barkholz