Executives of Community Health Systems are looking to get out of a long-term lease to run a North Florida hospital.
Franklin-based CHS took over Shands Lake Shore in Lake City, halfway between Jacksonville and Tallahassee, in early 2014 as part of its ill-fated acquisition of Health Management Associates. TV Station WJCB last week reported that CHS’ lease for the 99-bed facility runs through 2040 and that the company is on the hook for $10 million in rent payments until then.
CHS recently completed the sale of two small hospitals near Lake City to HCA Healthcare, which is running them now as emergency departments. Those deals are likely to be among the last of a multi-year push to cut CHS’ debt load and improve its profitability.