PMMC, Phoenixville Hospital owner exploring options.
Community Health Systems Inc., which owns Pottstown Memorial Medical Center and Phoenixville Hospital — as well as three other hospitals in the region — is reportedly “exploring a variety of options” for its future.
Following a Bloomberg News report Friday that the Tennessee-based for-profit health care firm might be placing itself up for sale, Community Health Systems issued a statement Monday confirming discussions are underway with financial sponsors. “The discussions are at a very preliminary stage and there is no timeline established for this review,” Community Health Systems said in a press release. “There can be no certainty that the exploration will result in any kind of transaction.”
Community Health Systems is one of the largest publicly traded hospital companies in the U.S. The company owns, leases or operates 158 affiliated hospitals in 22 states with nearly 27,000 licensed beds.
“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 chief executive officer of Community Health Systems in the press release. “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.”
A request for additional information from Pottstown Memorial Medical Center was referred to corporate media relations. Community Health Systems spokeswoman Tomi Galin declined to comment “beyond what is in the press release.” Phoenixville Hospital did not respond to the request.
In April, the company completed the spin-off of Quorum Health Corporation, comprised of 38 affiliated hospitals and outpatient services in 16 states. In August, the company is- sued its second quarter results, posting a net-loss of $1.43 billion.
Community Health Systems Inc., which trades as CYH on the New York Stock Exchange, opened Wednesday at $10.06, closing the day at $10.17. The stock’s 52 week high, according to Nasdaq was $40.91 while its 52-week low was $9.67.
Community Health Systems acquired PMMC in 2003 for $80 million and Phoenixville Hospital in 2004 for $100.8 million. The corporation also owns Chestnut Hill Hospital in Philadelphia, Brandywine Hospital in Coatesville and Jennersville Regional Hospital in West Grove. A total of 17 Pennsylvania hospitals are owned by Community Health Systems.
“The discussions are at av ery preliminary stage and there is no timeline established for this review. There can be no certainty that the exploration will result in any kind of transaction.” — Community Health Systems Inc. statement