Community Health Systems sells 2 North Carolina hospitals to Novant Health for $320M

Community Health Systems announced late Tuesday that it has signed a deal to sell two North Carolina hospitals to Novant Health for about $320 million.

The deal is slated to close later this year pending regulatory approvals and closing conditions.

The first of the two hospitals is Lake Norman Regional Medical Center in Mooresville, North Carolina, a 123-bed acute care hospital. The second is Davis Regional Medical Center in Statesville, North Carolina, which was previously a 146-bed acute care hospital before closing last year to transition into a behavioral health care facility.

Both hospitals were acquired by CHS when it purchased Health Management Associates in early 2014 for roughly $7.6 billion.

The deal would add to Winston-Salem, North Carolina-based Novant Health’s current tally of 15 medical centers. The integrated nonprofit system runs more than 800 locations across four states and employs more than 35,000 people, according to its website. It reported operating revenues of $7.4 billion and net income of $812 million in 2021.

Franklin, Tennessee-based CHS is among the largest for-profit systems in the country, owning or leasing 79 affiliated hospitals across 16 states through its subsidiaries.

In earnings reported a couple of weeks back, the company said it pulled in $12.2 billion in net operating revenue and $46 million in net income attributable to stockholders during 2022, both of which were below its totals from 2021.

Executives told investors they plan to focus capital investments on expanding outpatient services, inpatient capacity and additional care access points with an end goal of boosting near- and long-term volumes.