Community Health System subsidiary acquires majority stake in Indiana University Health La Porte, Knox hospitals
'Affiliation extends our footprint into new markets in Indiana,' CHS chairman says.
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A subsidiary of Community Health Systems has acquired an 80 percent ownership interest in a joint venture entity with Indiana University Health. It includes substantially all of the assets of the 227-bed IU Health La Porte Hospital in La Porte, Indiana, and the 50-bed IU Health Starke Hospital in Knox, Indiana, as well as affiliated outpatient centers and physician practices.
Headquartered in Franklin, Tennessee, Community Health Systems, through its subsidiaries, currently owns, leases or operates 197 affiliated hospitals in 29 states with an aggregate of approximately 30,000 licensed beds.
The entity recently announced plans for a spin-off transaction to create a new, publicly-traded company, Quorum Health Corporation, with 38 affiliated hospitals and related outpatient services in 16 states, together with Quorum Health Resources, a subsidiary providing management advisory and consulting services to non-affiliated hospitals. The transaction is expected to close during the first half of 2016.
[Also: Community Health Systems' posts 4th quarter loss]
IU Health La Porte and Starke Hospitals are located in Northwest Indiana, near Porter Health Care System in Valparaiso, a CHS-affiliated network that includes two acute care facilities. This acquisition brings the total number of CHS-affiliated hospitals in Indiana to 11.
In a statement, Wayne Smith, chairman and CEO of CHS, said, "This affiliation extends our footprint into new markets in Indiana, a state where we already have significant operations."
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