ValleyCare’s parent company to divest in 12 hospitals

YOUNGSTOWN — The parent company of ValleyCare Health System of Ohio plans to divest in 12 of its hospitals, but hasn’t said which ones.

Franklin, Tenn.-based Community Health Systems, which operates Hillside Rehabilitation Hospital, Northside Medical Center and Trumbull Memorial Hospital, has 158 hospitals in 22 states.

“Community Health Systems has not been specific about which facilities or markets may be affected in plans to divest 12 hospitals, but we will make those announcements at the appropriate time in the process,” Tomi Galin, senior vice president of corporate communications and marketing for CHS, said in a statement. “We are highly invested in the future success of all of our affiliated hospitals and well-being of the communities where we operate. In any market where a divestiture should occur, we will work to facilitate a smooth ownership transition in order to maintain quality of care and continuity of services for local residents.”

At both the Wells Fargo Securities Healthcare Conference and the Baird 2016 Global Healthcare Conference that recently took place, CHS President of Financial Services and CFO Larry Cash discussed the divestitures.

“We are focused on rationalizing our portfolio,” Cash said.

After the hospitals are sold, the proceeds will reduce CHS’ debt to $850 million.

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