Community Health Systems (NYSE:CYH), which happens to be a hospital operator, has in the recent past been struggling to maintain its daily operations. The news hitting headlines at the moment is about its resolution to move ahead and sell out about 14 hospitals to various hospitals systems.
One of the top buyers that rushed into the buying is the renowned HCA Healthcare Inc (NYSE:HCA) based in Nashville. Debts show up as in evitable to a lot of the top providers and one thing that is for sure is the fact that you definitely will have to repay them.
There is no way you would boast of progress with a lot of debts on your back and that is the reason the t health provider resorted to making the sales which it hopes would move a long way towards helping it take care of the debts.
The CHS which is as a matter of fact based in Franklin went ahead to make an announcement citing that it had actually succeeded in selling out five of the hospitals in about five separate transactions. Till this moment, the agreements haven’t yet been unveiled despite the constant questions being asked by news reporters to the company’s top executives.
Other sources indicate that the CHS subsidiaries had gone ahead to sell about eight hospitals in Ohio, Florida and Pennsylvania.
The huge debt load has emerged in most of the company’s board meetings with a large number of the officials proposing that there was indeed great need to face out the debt in order for the company to get back to its feet and start moving towards the direction of business success.
One of the top executives during his turn to speak had said that time was up to continue playing the “politics of the ostrich” where some top official wanted the company to hide its “head” in the sand and as a matter of fact act like nothing was happening. He insisted that it was the obligation of the provider to repay the debt and there were no two ways about it.
The latest move by the company might seem retrogressive at the start but in the long run it is for the best! However, we just have to wait and see what becomes of the top provider.