Novant Health will pay $320 million for two Community Health Systems hospitals in North Carolina, marking CHS’ exit from the Tar Heel State.
Novant Health will acquire the Lake Norman Regional Medical Center in Mooresville and the Davis Regional Medical Center in Statesville, which is transitioning from an acute-care hospital to an inpatient behavioral health facility. The transaction is expected to close later this year, subject to regulatory approval, Franklin, Tennessee-based Community Health Systems announced Tuesday.
When the sale is final, Winston-Salem, North Carolina-based Novant Health will operate 17 hospitals. Community Health Systems has sold 19 hospitals and reduced its inpatient facilities since 2020. The hospital chain had more than 200 locations at its peak.
“We continue to have interest from outside parties related to potential divestitures, and we are also assessing opportunities to add to our portfolio,” Community Health Systems Chief Financial Officer Kevin Hammons said during a call with investors last month.
Community Health Systems recorded $179 million in net income in 2022, compared with $368 million in 2021.
Novant Health reported $82.6 million in operating income last year, compared with $369 million the year before, according to an unaudited financial statement released Wednesday. Revenue reached $7.57 billion, a 2.4% increase.