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The parent company of ValleyCare to divest in 12 hospitals
By Kalea Hall
YOUNGSTOWN
The parent company of ValleyCare Health System of Ohio plans to divest 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.
CHS, the largest owner of publicly traded hospital companies, reported a decrease in income to a loss of $1.431 billion, compared with income of $111 million reported in the second quarter of 2015. Year-over-year total admissions were reported at a 9.1 percent decrease year-over-year.
CHS purchased the Forum Health system, which included the three local hospitals, out of bankruptcy in October 2010 for $120 million.