CHS agrees to sell five more hospitals in Pennsylvania
Struggling Community Health Systems has agreed to sell five hos- pitals in Pennsylvania to the not-forprofit Reading Health System. The five hospitals are among 30 hospitals that Franklin, Tenn.-based CHS has agreed to sell to reduce $15 billion in debt. Terms were not disclosed.
They are 169-bed Brandywine Hospital in Coatesville, 148-bed Chestnut Hill Hospital in Philadelphia, 63-bed Jennersville Hospital in West Grove, 151-bed Phoenixville (Pa.) Hospital and 232-bed Pottstown (Pa.) Memorial Medical Center. Earlier this year, CHS agreed to sell two other of its hospitals in Pennsylvania to Boston-based Steward Health Care System as part of an eight-hospital deal.
CHS is selling hospitals with single-digit operating margins to improve its earnings and raise money to pay down its outsized debt. The system, the nation’s second-largest investor-owned hospital company with 146 hospitals, posted a net loss of $1.7 billion in 2016.