Ascension Health has signed a definitive agreement to buy Community Health System's majority ownership in a Texas hospital for $460 million.
The deal involves CHS' 80% ownership stake in Cedar Park Regional Medical Center and related businesses in Cedar Park, Texas. The buyer, Ascension Seton, already holds a minority interest in the 126-bed medical center, according to a Tuesday news release.
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The transaction is subject to regulatory approvals and expected to close in the late second or early third quarter, according to the release from CHS.
Ascension Seton is part of Ascension Texas, which operates 13 hospitals and more than 200 care sites across central Texas. Ascension plans to expand medical services and improve operational efficiencies at Cedar Park Regional, the system said in a separate news release.
The larger St. Louis-based Ascension system has been selling facilities in recent months throughout the Midwest and Alabama. Prime Healthcare acquired eight Ascension Illinois hospitals in March. Ascension also announced plans in April to sell four Michigan hospitals to Beacon Health System.
In contrast, Ascension Saint Thomas and PathPoint Health formed a joint venture this month to open two outpatient centers in Tennessee.
Franklin, Tennessee-based CHS operates roughly 70 hospitals and more than 1,000 care sites across 14 states. The for-profit system has sought to sell off more than $1 billion of facilities to improve its bottom line. In March, CHS sold ShorePoint Health System in Florida to AdventHealth in a $260 million deal. The system also closed a $284 million deal with Duke Health in April to sell Lake Norman Regional Medical Center in North Carolina.
