Community Health Systems acquires Physicians' Specialty Hospital in Arkansas

Photo by Physician's Specialty Hospital

A Community Health Systems subsidiary has gained 80 percent ownership interest in Physicians' Specialty Hospital, a 20 bed facility in Fayetteville, Arkansas, CHS announced Friday.

Physicians' is located in the region serviced by Northwest Health, a CHS-affiliated network comprised of three hospitals, four convenient care facilities and other outpatient clinics.

"The addition of Physicians' Specialty Hospital in Fayetteville deepens our network of facilities in northwest Arkansas, one of the fastest-growing markets in the U.S. The physicians and providers of this hospital have established a strong reputation for quality care, and we look forward to working with them as we coordinate and strengthen clinical services for the region," said Wayne T. Smith, chairman and chief executive officer of Community Health Systems, in the announcement.

[Also: CHS subsidiary acquires majority stake in Indiana University Health La Porte, Knox hospitals]

CHS is one of the largest publicly traded hospital companies in the United States. Through its subsidiaries, they own, lease or operate 198 affiliated hospitals in 29 states.

The company has also announced the approval by their Board of Directors of the distribution of 100 percent of all common stock of their new publicly traded company, Quorum Health Corporation. If the deal proceeds as planned, every CHS stockholder on record as of April 22 of this year will receive one share of QHC common stock for every four shares of CHS common stock held as of the the April 22.

[Also: Community Health Systems' posts 4th quarter loss]

That distribution date is April 29, 2016, which is the same day the spin-off deal is expected to go into effect. QHC will then own or lease 38 hospitals across 16 states, with an aggregate of 3,582 licensed beds.

Twitter: @BethJSanborn