Community Health Systems, one of the largest publicly traded hospital chains in the United States, has offloaded another hospital from its portfolio. On April 15, Community Health Systems announced the sale of its 80% stake in Cedar Park Regional Medical Center to Ascension for $460 million in cash, implying a total value of $575 million for the hospital.
Cedar Park Regional Medical Center is a 126-bed short-term acute care hospital with a Primary Stroke Center and a Level II Neonatal Intensive Care Unit. According to its most recent cost report data, the hospital generated approximately $181 million in net patient revenue in 2023.
For the past few years, Community Health Systems has been focused on cutting down on its debt and balancing its portfolio by selling various hospitals across the country. According to transaction information in the LevinPro HC database, Community Health Systems has sold 24 hospitals since 2020, totalling more than $2.32 billion in sale prices. Cedar Park Regional Medical Center has the highest value so far, but other notable transactions include the $284 million sale of Lake Norman Regional Medical Center in November and a two-hospital deal in Florida just before Thanksgiving valued at $265 million. The buyers in those transactions were Duke Health in North Carolina and AdventHealth in Florida, respectively.
According to Community Health Systems’ 2024 annual financial results, the health system recorded net operating revenues of $12.6 billion but a net loss of $516 million and adjusted EBITDA of $1.5 billion. Overall admissions in its hospitals were down 3.2% year over year, and its long-term debt is sitting at $11.43 billion.
The health system says it still has plans to sell more hospitals, so sign up for LevinPro HC to track all those announcements.
