CHS Explores ‘Variety of Options’ Amid Sale Rumors
YOUNGSTOWN, Ohio – Community Health Systems Inc., which owns hospitals in the Mahoning and Shenango valleys, could be shedding the business.
The Tennessee-based company confirmed this morning that it is “exploring a variety of options with financial sponsors, as well as other potential alternatives.”
The statement, posted on its website, follows a report by Bloomberg Friday that the company was exploring a sale of its business. CHS shares have plunged 75% over the past 12 months and posted a loss of $1.43 billion during the second quarter, according to Bloomberg. The report sent the companies shares up 15.5% by the close of trading Friday.
CHS is the nation’s largest for-profit hospital system. It operates 197 hospitals in 29 states, according to the company’s 2015 annual report.
In August 2010, CHS was the successful bidder for the assets of the former Forum Health in Mahoning and Trumbull counties. Those assets included Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland. They now operate as ValleyCare Health System of Ohio. Two years ago, CHS purchased Sharon Regional Health System in Sharon, Pa.
According to the statement, the discussions are at a “very preliminary stage” with no set timeline established for the review, and “no certainty that the exploration will result in any kind of transaction.” CHS said it doesn’t expect to make further public comment during the exploratory process.
“Community Health Systems’ primary focus continues to be on delivering high-quality health services in the communities where we operate,” said Wayne T. Smith, chairman and CEO. “Our management team is completely committed to efforts that advance clinical excellence, operational and financial performance and growth strategies that will benefit our organization and the customers we serve.”
Copyright 2023 The Business Journal, Youngstown, Ohio.