The subsidiaries of Community Health Systems (NYSE:CYH) have struck a business deal with HCA Healthcare Inc (NYSE:HCA).They will be seeking to sell the Texas-based 103-bed Weatherford Regional Medical Center as well as the associated assets of the latter. This announcement was made recently by Community Health Systems, Inc. It was a matter that captured the attention of the various interested parties in a big way.
This particular transaction according to sources will be subject to both the closing conditions and the customary regulatory approvals. The two business giants are hopeful that by the winter of 2017 everything will be accomplished.
One of the top officials in the deal outlined that the eventual completion of the transaction will spell out the start to better things ahead. For instance, Weatherford Regional will with immediate effect become part and parcel of HCA’s Medical City Healthcare.
Weatherford Regional has over the years maintained great relations with its community showing great care and support. Patients will have a lot to benefit from the addition of Weatherford Regional to HCA Healthcare’s Medical City Healthcare family. Most probably, most of them will be excited about gaining quick access to medical services in the Fort Worth area.
While recently speaking to a number of top news reporters, one of the executives working with Community Health Systems said, “Community Health’s significant divestitures have helped it manage and control its debt level, which has in turn boosted investors’ confidence in the stock. This is evident from the 71% rise in its stock price year to date compared with the gain of 16% for the Zacks categorized Medical-Hospital industry.”
He added to say that the trusted provider’s high level of long-term debt has for quite long remained an issue of concern. It has been doing all within its means to handle the matter. For instance, it has resorted to deleveraging strategies and implementing portfolio rationalization according to Yahoo.
Some top analysts have given their statement in relation to the matter. They have cited that the provider needs to consider lowering its debt level further through strategic divestures.