11-28-2007 6:00 AM — Community Health Systems announced late Tuesday that it has agreed to sell nine hospitals to fellow Franklin hospital manager Capella Healthcare for $315 million.
Following Community Health’s acquisition of Triad earlier this year a spinout of facilities was expected. But although some of the hospitals being sold, such as Jacksonville Medical Center, were among the more than 50 acquired in the Triad deal, others such as Hartselle Medical Center were preexisting company facilities.
In the statement from Community Health, CEO Wayne Smith said that his company was taking the “the opportunity to reduce [CHS’s] outstanding debt and devote more concentrated operating energies to the balance of [CHS’s} hospital portfolio.”
The hospitals are spread out geographically located in Alabama, Arkansas, Missouri, Oregon, and here in Tennessee.
The deal, expected to close in the first quarter of '08, will more than double Capella’s current portfolio of hospitals bringing the total number to 14.
According to the release, the nine hospitals being sold generated an aggregate of approximately $420 million net revenue over the last year.
Healthcare | 
You must be logged in to comment. If you do not have an account, you can join our esteemed subscribers.