Community Health Systems has acquired a 74-bed hospital from a Northwest Arkansas city and will build a replacement facility there by 2013.
CHS' deal for Siloam Springs Memorial Hospital, which is structured as a short-term lease, brings the Franklin-based company's network in Arkansas to eight. Terms of the deal were not disclosed, although area media recently reported that, in addition to shouldering construction costs, CHS will lease the existing facility for $1 per year and contribute $1.6 million in escrow funds.
In a statement announcing the deal, CHS Chairman, president and CEO Wayne Smith said "Siloam Springs is part of a rapidly growing area with an increasing demand for healthcare services."
Shares of CHS (Ticker: CYH) ended last week's trading at $18.64, up 5 percent from the Friday before. They're down about 40 percent in the last six months.
Franklin, Tenn. |
Williamson County |
Siloam Springs, Arkansas |
Community Health Systems Inc. |
Wayne T. Smith |
Mergers & acquisitions |
Hospital management: rural |
Market-movers
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