FRANKLIN, Tenn.--(BUSINESS WIRE)--Community Health Systems, Inc. (NYSE:CYH) announced today that subsidiaries of the Company have signed a definitive agreement to sell eight hospitals and their associated assets to subsidiaries of Steward Health Care LLC. Facilities included in the transaction are 119-bed Wuesthoff Health System-Melbourne in Melbourne, Fla.; 298-bed Wuesthoff Health System-Rockledge in Rockledge, Fla.; 154-bed Sebastian River Medical Center in Sebastian, Fla.; ValleyCare Health System of Ohio, with 355-bed Northside Medical Center in Youngstown, 311-bed Trumbull Memorial Hospital and 69-bed Hillside Rehabilitation Hospital in Warren; 258-bed Sharon Regional Health System in Sharon, Pa. and 254-bed Easton Hospital in Easton, Pa.
The transaction is expected to close in the second quarter of 2017, subject to customary regulatory approvals and closing conditions. The Company will apply proceeds of the transaction to pay down debt.
Commenting on the announcement, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, “This transaction is a significant step in our strategic work to optimize our portfolio and operations for the future. These hospitals play an important role in their communities and can benefit from Steward Health Care’s community-based care model going forward.”
The Company will provide an update on its divestiture activity during its fourth quarter and year-end 2016 earnings call. The conference call is scheduled to begin at 10:00 a.m. Central time, 11:00 a.m. Eastern time, on Tuesday, February 21, 2017. A live broadcast of the conference call will be available online at www.chs.net.
About Community Health Systems, Inc.
Community Health Systems, Inc. is one of the largest publicly traded hospital companies in the United States and a leading operator of general acute care hospitals in communities across the country. The Company, through its subsidiaries, owns, leases or operates 158 affiliated hospitals in 22 states with an aggregate of nearly 27,000 licensed beds. The Company’s headquarters are located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.” More information about the Company can be found on its website at www.chs.net.
Statements contained in this news release regarding potential transactions, operating results, and other events are forward-looking statements that involve risk and uncertainties. Actual future events or results may differ materially from these statements. Readers are referred to the documents filed by Community Health Systems, Inc. with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K, current reports on Form 8-K and quarterly reports on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.