Community Health Systems may see Chinese billionaire become more active in its governance

Tianqiao Chen, a Chinese billionaire, has formally expressed his intentions to work with the Tennessee-based Community Health Systems.

Community Health Systems, which has been dumping hospitals at a feverish clip in response to financial struggles, may see a Chinese billionaire become more active in its governance.

Tianqiao Chen, in a filing this week with the Securities and Exchange Commission, said he intends to work with the CHS management team on business and strategy aimed at turning around the struggling system.

That role would be more active than what was indicated last fall. In October, Singapore-based investment firm Shanda Group said Chen's companies would remain passive investors in Tennessee-based CHS, even though it would be the system's largest shareholder.

[Also: Struggling CHS to sell off home health, hospice division for $128 million]

CHS has been steadily selling off hospitals and other medical properties in order to raise $1.2 billion needed to pay down its debt. In February the company sold eight hospitals located in Florida, Ohio and Pennsylvania, to Steward Health Care for an undisclosed price. And the system sold 10 medical office buildings to real estate company HCP Inc. for $163 million just before Christmas. And earlier in December, CHS announced its intention to sell two hospitals in Washington for $45 million, adding to the 17 hospitals that were already on the block as of November.

The system has been struggling since 2014, when it went forward with a $7.3 billion acquisition of Health Management Associates. Patient volumes at former HMA hospitals have been on the downturn, and the resultant increase in doctor recruitment has strained the company's resources.

Meanwhile, CHS' shareholders' rights agreement is set to expire on April 1. Dubbed a "poison pill," the agreement, in place since October, prevents a single entity from gaining a controlling share of company stock until the system had a chance to "pursue other alternatives."

Twitter: @JELagasse