Community Health Systems sells two-hospital Mary Black Health System as part of long-term divestitures

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Franklin, Tennessee-based Community Health Systems has announced plans to sell the two hospital Mary Black Health System and related physician clinic operations and outpatient services to Spartanburg Regional Healthcare System in South Carolina. The deal is slated to close in the fourth quarter of 2018 pending regulatory approvals and closing conditions.

The sale is part of CHS's planned divestitures outlined earlier this year in an earnings call. Mary Black Health System in Spartanburg, South Carolina has 207 beds and Mary Black Health System in Gaffney, South Carolina, houses 125. 

When the transaction is complete, Community Health Systems affiliates will still operate four hospitals in South Carolina.

THE IMPACT/WHY IT MATTERS

CHS is one of the largest publicly traded hospital companies in the United States and through its subsidiaries, the system owns, leases or operates 117 affiliated hospitals in 20 states with approximately 19,000 licensed beds. Their long string of hospital sales and complicated financial picture have garnered much attention, as they proceed forward with a massive divestiture plan that touts a combined total of approximately $2 billion in annual net operating revenues.

THE TREND

In July, the system announced its second quarter financial stats which showed that it had decreased its net loss by $27 million in Q2 2018 to $110 million, down from a $137 million net loss the same period 2017. On a same-store basis, admissions decreased by 2.1 percent and adjusted admissions decreased 0.2 percent, compared with the same period in 2017. CHS also saw its long-term debt drop to $13.67 billion as of June 30 from $13.88 billion at the end of 2017.

ON THE RECORD

At the time, system CEO Wayne T. Smith commented, "Our second quarter results reflect progress in our key areas of strategic focus, most notably improvements in same-store operating results, progress on divestitures and successful refinancings. As we complete additional divestitures this year, we believe our portfolio will become stronger, and more of our resources can be directed to markets where we have the greatest opportunities to drive incremental growth. We remain confident in our ability to strengthen our company through execution of our strategic growth initiatives, investments in high-quality healthcare services, and a continuous focus on expense management."

Twitter: @BethJSanborn
Email the writer: beth.sanborn@himssmedia.com