Community Health Systems, Inc. announced that subsidiaries of the Company have signed a definitive agreement to sell eight hospitals and their associated assets to subsidiaries of Steward Health Care LLC. Facilities included in the transaction are 119-bed Wuesthoff Health System-Melbourne in Melbourne, Fla.; 298-bed Wuesthoff Health System-Rockledge in Rockledge, Fla.; 154-bed Sebastian River Medical Center in Sebastian, Fla.; ValleyCare Health System of Ohio, with 355-bed Northside Medical Center in Youngstown, 311-bed Trumbull Memorial Hospital and 69-bed Hillside Rehabilitation Hospital in Warren; 258-bed Sharon Regional Health System in Sharon, Pa. and 254-bed Easton Hospital in Easton, Pa.
The transaction is expected to close in the second quarter of 2017, subject to customary regulatory approvals and closing conditions. The Company will apply proceeds of the transaction to pay down debt.
Commenting on the announcement, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, “This transaction is a significant step in our strategic work to optimize our portfolio and operations for the future. These hospitals play an important role in their communities and can benefit from Steward Health Care’s community-based care model going forward.”
The Company will provide an update on its divestiture activity during its fourth quarter and year-end 2016 earnings call. The conference call is scheduled to begin at 10:00 a.m. Central time, 11:00 a.m. Eastern time, on Tuesday, February 21, 2017. A live broadcast of the conference call will be available online at www.chs.net.