Community Health Systems has agreed to sell nine of its hospitals to Capella Hospitals, a much-smaller company which currently owns and operates five facilities of its own. The nine facilities, which are scattered across Tennessee, Arkansas, Alabama and Missouri, generated net revenue of $420 million last year through September 30. Capella will pay $315 million for the new properties, funding the agreement with a combination of equity funding from GTCR Golder Rauner and bank debt. Four of the nine hospitals had been owned by Triad Hospitals prior to its acquisition by Community earlier this year. To reduce its debt load, Community has been selling properties from Triad's portfolio, as well as exiting some joint ventures in which Triad had participated.
To learn more about the deal:
- read this piece from The Tennessean
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