Dive Brief:
Community Health Systems has inked a deal to sell its stakes in two joint ventures to Vanderbilt University Medical Center for $600 million, according to a Thursday news release.
Under the deal, VUMC will acquire the remaining 80% stake in the joint ventures, which own and operate 270-bed Tennova Healthcare-Clarksville in Tennessee and other ancillary businesses. Vanderbilt currently owns a 20% stake in the joint venture.
The deal is expected to close early next year, subject to regulatory approvals and closing conditions, the companies said.
Dive Insight:
Should the deal be approved, Tennova Healthcare will become VUMC’s fourth regional medical center, joining Wilson County Hospital, Tullahoma-Harton Hospital and Bedford Hospital — all based in Tennessee. Vanderbilt operates seven hospitals.
VUMC was interested in the hospital in part due to population growth in Clarksville, according to the news release. The city has a population of 200,000 and is Tennessee’s fifth largest city.
The health system says it plans to hire all Tennova Healthcare-Clarksville employees who are in good standing once the deal is finalized.
CHS foreshadowed the divestiture during the company’s third quarter last week. On a call with investors, CEO Kevin Hammons said the hospital operator had several deals in the works.
CHS has divested full or partial stakes in several hospitals this year, including its Florida-based ShorePoint Health System, Cedar Park Regional Medical Center in Texas and Lake Norman Regional Medical Center in North Carolina.
CHS announced plans to sell an additional three hospitals in Pennsylvania to Tenor Health Foundation this month.
