Community Health Systems signed a definitive agreement to sell Florida-based ShorePoint Health System to AdventHealth for $265 million.
The agreement involves two hospitals — ShorePoint Health Port Charlotte and certain assets of ShorePoint Health Punta Gorda — in addition to ancillary businesses such as physician clinics, outpatient services and a freestanding emergency department. The deal is expected to close in the first quarter of 2025 and is subject to regulatory approvals, according to a Friday news release.
Related: Community Health Systems considers selling $1B of facilities
ShorePoint Health Punta Gorda sustained major damage from flooding when Hurricane Helene made landfall in late September, followed by Hurricane Milton in October. The facility's inpatient operations are suspended indefinitely, the release said.
CHS did not respond to requests for information about which assets of ShorePoint Health Punta Gorda would be included in the deal.
Altamonte Springs, Florida-based AdventHealth looks forward to working with ShorePoint clinicians to meet growing healthcare needs in the area, President and CEO Terry Shaw said in a statement.
CHS' proposed sale is part of a larger push to sell off more than $1 billion in facilities to help bolster the system's financial standing, which has struggled due to increased payer denial rates and high medical specialist fees, among other factors. Most of the deals are expected to close in the fourth quarter or first quarter of 2025, President and Chief Financial Officer Kevin Hammons said in October on a third-quarter earnings call.
For-profit CHS sold three Florida hospitals to Tampa General Hospital in a $294 million deal about a year ago. In July, CHS announced a definitive agreement to sell three Pennsylvania hospitals to WoodBridge Healthcare for $120 million. The next month, CHS closed its sale of Tennova Healthcare-Cleveland in Tennessee to Hamilton Health Care System for $160 million.
The system was also looking to exit North Carolina by selling two hospitals to Novant Health earlier this year, but the deal fell through after federal regulators sued to block the acquisition.
CHS reported a $391 million net loss, or $2.95 per diluted share, in the third quarter, compared with a $91 million loss, or 69 cents per share, in the third quarter of 2023.
