Community Health Systems has wrapped up its deal to sell three Florida hospitals to Tampa General Hospital.
The transaction, effective Dec. 1, totaled $280 million in cash and another $14 million of estimated working capital and other purchase price adjustments, the large for-profit said in a release.
The three hospitals are the 120-bed Bravera Health Brooksville, the 128-bed Bravera Health Seven Rivers and the 124-bed Bravera Health Spring Hill. Each facility — along with other associated physician clinic operations, outpatient services and other assets — are located in communities north of Tampa, Florida.
July 25, 2023
Community Health Systems announced that it has signed a deal to sell three Florida hospitals to Tampa General Hospital for roughly $290 million.
The for-profit chain said it expects the deal to close later this year pending regulatory approval and other customary closing conditions.
The hospitals and other related facilities being handed over are each located in communities north of Tampa, Florida. This includes the 120-bed Bravera Health Brooksville, in Brooksville; the 128-bed Bravera Health Seven Rivers, in Crystal River; and the 124-bed Bravera Health Spring Hill, in Spring Hill.
Should the deal go through, CHS said it will receive $280 million in cash considerations that exclude anticipated purchase price adjustments for net working capital as well as the number of capital leases assumed by Tampa General Hospital. Including those bumps the deal’s estimated value up another $10 million.
During this year’s first quarter earnings call, CHS President and Chief Financial Officer Kevin Hammons said the system was courting partners for potential divestitures. Such deals “could provide opportunities to pay down debt as well as allow opportunities to reinvest resources to areas of our portfolio to further accelerate their long-term growth in earnings,” he said.
CHS confirmed in Tuesday’s announcement that the deal with Tampa General Hospitals was among those described during the earnings call.
CHS—which has its next earnings call scheduled for Aug. 3—spans 77 owned or leased affiliate hospitals across 15 states. It also has more than 1,000 other sites of care such as urgent care centers, freestanding emergency departments, ambulatory surgery centers and physician practices.
In February the system announced plans to sell two of its North Carolina hospitals to Novant Health for $320 million and followed that up with a single hospital sale in El Dorado, Arkansas. Still, the company was in hot water with its investors after posting an unexpected $51 million loss during the first quarter.
Tampa General Hospital is a private nonprofit headlined by its namesake 1,040-bed facility. It along with other outpatient facilities serves a population of over 4 million West Floridians.