Community Health Systems will sell two of its Washington hospitals to drive down its debt.
The Franklin, Tennessee-based health system announced it will sell 214-bed Yakima Regional Medical & Cardiac Center and 63-bed Toppenish Community Hospital to Sunnyside Community Hospital & Clinics for about $45 million. Both hospitals were part of CHS’ 2014 acquisition of Health Management Associates.
“The Yakima and Toppenish hospitals are valued community resources that will benefit from alignment with another regional provider,” CHS CEO Wayne T. Smith said in the announcement. “We are making progress with our strategic objective to divest a number of properties to focus on a more sustainable portfolio of hospitals and networks for the future.”
The sale should be completed in the second quarter of 2017, according to the announcement, and the funds will be used for debt payments.
The system has sold off a number of its acquisitions to improve its finances. Becker’s Hospital Review reported at the beginning of November that CHS intended to sell off 17 hospitals and other assets to pay off debts after a third-quarter loss of $79 million. CHS announced later that month that it would sell Rockwood Health System, based in Spokane, Washington, to MultiCare Health System for $425 million.
CHS has also faced troubles as a publicly traded hospital and in 2015 experienced a significant stock loss amid concerns about patient value.