Community Health Systems (CHS) is selling its 80% stake in a Texas hospital to Ascension Health for $460 million, the organizations announced Tuesday after market close.
The deal for Cedar Park Regional Medical Center and other ancillary businesses is expected to close later this quarter or early in the third, pending regulatory approvals and other conditions. Full control of the facilities would go to subsidiary system Ascension Seton, which already runs 10 hospitals in central Texas and held a minority interest in Cedar Park Regional.
“Cedar Park Regional Medical Center has a strong team of providers, including skilled physicians on the medical staff and dedicated employees, who are committed to serving our patients with quality, compassionate care,” Sean Tinney, the hospital’s CEO, said in a release. “We are confident that this transition will ensure the continued growth and success of Cedar Park Regional Medical Center. When the transaction is complete, we look forward to working together as part of Ascension Seton, with a focus on expanding healthcare resources and access to care in Cedar Park and our larger region.”
CHS posted hundreds of millions of net losses across 2024 despite a rise in same-store revenues and admissions as well as a slight bump in adjusted EBITDA. During its most recent earnings, the public for-profit’s leadership outlined potential facility divestitures that were in the works—which the company confirmed in this week’s announcement included Cedar Park Regional.
The past couple of months have also seen CHS wrap up divestitures of Lake Norman Regional Medical Center in North Carolina to Duke University Health System for $284 million and ShorePoint Health assets in Florida to AdventHealth for $260 million.
As for Cedar Park, Ascension Seton said its new role as the hospital’s sole operator will facilitate greater efficiency and a “seamless experience for every patient.”
“This isn’t just a milestone—it’s a commitment to the future of healthcare in Cedar Park,” Eduardo Conrado, president of Ascension, said in a release. “With full ownership, we can accelerate growth, streamline operations and introduce new services that meet the evolving needs of the community. Above all, this move allows us to further our Mission and ensure that no one is left without the care they need.”
Of note, the purchase comes as Ascension Seton’s parent organization has worked to tighten its hospital portfolio, largely through sales in Michigan and Illinois.