Medical University of South Carolina makes first-ever hospital acquisition with purchase of 4 hospitals from Community Health Systems
The additions will increase the size and scale of MUSC Health network, deliver greater value to patients, positively impact population health.
MUSC School of Medicine-courtesy MUSC
The Medical University of South Carolina will increase its size and scope with the newly approved acquisition of four hospitals from Tennessee-based Community Health Systems. The MUSC Board of Trustees voted in favor of the purchase from CHS subsidiaries which includes Chester Regional Medical Center, an 82-bed, licensed facility; regional acute-care facility Carolinas Hospital System in Florence with a 396-beds; Springs Memorial Hospital in Lancaster, a 225-bed facility with only private rooms; and Carolinas Hospital System - Marion, a 124-bed acute-care facility that also includes a 92-bed nursing center.
WHY IT MATTERS
In 2017, the four hospitals purchased together provided 129,000 emergency department visits, 159,000 outpatient visits (excluding ED visits), 18,800 hospital admissions, and 339,000 clinic visits with physicians. Once the deal is done, MUSC will employ more than 16,400 people in South Carolina.
The transaction represents a major first for MUSC, as it is the first time MUSC has acquired other hospitals.
"The additions will increase the size and scale of the MUSC Health network, and in today's environment, larger, more efficient health care systems can deliver greater value to patients and have a positive impact on population health," said Charles W. Schulze, chairman of the MUSC board.
THE TREND
Community Health Systems has been steadily divesting hospitals for more than a year as part of a major push to offload debt and shore up its finances. In July, the system's second quarter financial stats showed it had decreased its net loss by $27 million to $110 million, down from a $137 million net loss for the same period 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
"As the state's leading academic health center, we must be prepared for the future," said Dr. David J. Cole, MUSC president. "MUSC is committed to providing the best healthcare possible for our communities and state through strategic partnerships and our emerging MUSC Health network."
Twitter: @BethJSanborn
Email the writer: beth.sanborn@himssmedia.com
