FRANKLIN: Community Health Systems Inc. announced the subsidiaries of the Company have signed a definitive agreement to sell two Texas hospitals – 231-bed Abilene Regional Medical Center in Abilene and 188-bed Brownwood Regional Medical Center in Brownwood and their associated assets to subsidiaries of Hendrick Health System.
As part of the proposed transaction, Hendrick would work with the Brownwood County Hospital Authority to secure assignment of the long-term lease and operations of Brownwood Regional Medical Center.
The parties intend to apply for a Certificate of Public Advantage under a new regulatory framework in the State of Texas, involving, among other things, review and approval of the transaction by the Texas Health and Human Services Commission. This regulatory review process is expected to conclude by the end of the third quarter this year.
The hospitals in this transaction are among the additional planned divestitures discussed on the Company’s fourth quarter 2019 earnings call.
Community Health Systems, Inc. is one of the largest publicly traded hospital companies in the United States and a leading operator of general acute care hospitals in communities across the country.