Community Health Systems (NYSE:CYH) reported that its have finalized a definitive deal to divest two Washington hospitals, Yakima Regional Medical and Cardiac Center, and Toppenish Community Hospital, to Sunnyside Community Hospital and Clinics for nearly $45 million comprising working capital.
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Commenting on the news, Wayne T. Smith, the CEO and Chairman of Community Health, stated that the Toppenish and Yakima hospitals are esteemed community resources. They will gain from alignment with a leading regional provider. The company is making progress with its strategic goal to divest a number of assets to focus on a sustainable portfolio of networks and hospitals for the future.
The deal is projected to complete in 2Q2017, reliant to customary regulatory nods and closing conditions. This deal comes in the list of the seven transactions talked during the firm’s 3Q2016 earnings call. The firm will use transaction proceeds to pay down debt.
Community Health is one of the leading publicly traded hospital firms in the United States and a major operator of wide-ranging acute care hospitals in societies across the nation. The firm, via its subsidiaries, owns, leases or manages 158 affiliated hospitals in numerous states with a total of around 27,000 licensed beds. Its headquarters are based in Franklin.
Tenet Healthcare Corporation (NYSE:THC) is a healthcare services firm which runs 79 wide-ranging acute care hospitals, 470 outpatient centers and 20 surgical hospitals in the U.S. The firm’s equity is approaching recovery means after being weak most of this year. THC stock eroded nearly half its value in the last one year. Within the hospital division, that’s a drop surpassed only by the decline in stock of Community Health where the stock eroded three-quarters of its value so far in this year.
In the last trading session, the stock price of Community Health jumped over 4% to close at $5.65.