Hospital

The leaders of Community Health Systems said Tuesday they are putting a bow on their multi-year push to sell off hospitals.

In reporting their first-quarter results, which showed a small profit thanks mainly to a big tax benefit, CHS executives said the agreements they have signed since Jan. 1 to sell seven hospitals for about $400 million, “will mark the end of the formal portfolio rationalization strategy” they launched more than three years ago. Over that time, CHS has sold hospitals home to about half of the more than 30,000 beds it owned following the $7.3 billion acquisition of Health Management Associates in early 2014. In the past six years, its hospital count has shrunk from 206 hospitals in 29 states to 99 in 17 states.

The sales helped Franklin-based CHS trim its long-term debts to $13.5 billion from $19.2 billion at the end of 2014. But the company still has a shareholders’ deficit and interest expenses were nearly 9 percent of first-quarter revenues.

Shares of CHS (Ticker: CYH) were down 4 percent to $3.53 in pre-market trading Wednesday. Year to date, they have risen more than 25 percent.

This post originally appeared in our sister publication, the Nashville Post

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.