Community Health Systems Announces Definitive Agreement to Acquire Majority Ownership of La Porte and Knox, Indiana Hospitals
December 29 2015 - 7:00AM
Business Wire
Community Health Systems, Inc. (NYSE: CYH) announced today that
subsidiaries of the Company have executed a definitive agreement to
acquire a majority ownership of 227-bed IU Health La Porte Hospital
in La Porte and 50-bed IU Health Starke Hospital in northwestern
Indiana. The subsidiaries will assume 80 percent ownership of the
hospitals and Indiana University Health will have 20 percent.
Commenting on today’s announcement, Wayne T. Smith, chairman and
chief executive officer of Community Health Systems, Inc., said,
“We will support the work of these hospitals to improve the overall
health of their communities by investing capital and expanding
resources for physicians and employees to deliver high quality
care. Economic development efforts in Northwest Indiana between
Valparaiso and South Bend and a new relationship with IU Health
make these hospitals strong additions to our network of
facilities.”
With the addition of La Porte and Starke hospitals, Community
Health Systems affiliates will operate 11 hospitals in Indiana.
About Community Health Systems, Inc.
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. Through its subsidiaries, the Company currently
owns, leases or operates 197 affiliated hospitals in 29 states with
an aggregate of approximately 30,000 licensed beds. The Company has
announced plans for a spin-off transaction to create a new,
publicly traded company, Quorum Health Corporation, with 38
affiliated hospitals and related outpatient services in 16 states,
together with Quorum Health Resources, LLC, a subsidiary providing
management and consulting services to non-affiliated hospitals. The
transaction is expected to close during the first quarter of 2016.
The Company’s headquarters are located in Franklin, Tennessee, a
suburb south of Nashville. Shares in Community Health Systems, Inc.
are traded on the New York Stock Exchange under the symbol “CYH.”
More information about the Company can be found on its website at
www.chs.net.
Forward-Looking Statements
Statements contained in this news release regarding expected
operating results, acquisition transactions or divestitures and
other events are forward-looking statements that involve risk and
uncertainties. Actual future events or results may differ
materially from these statements. Readers are referred to the
documents filed by Community Health Systems, Inc. with the
Securities and Exchange Commission, including the Company’s annual
report on Form 10-K, current reports on Form 8-K and quarterly
reports on Form 10-Q. These filings identify important risk factors
and other uncertainties that could cause actual results to differ
from those contained in the forward-looking statements. The Company
undertakes no obligation to revise or update any forward-looking
statements, or to make any other forward-looking statements,
whether as a result of new information, future events or
otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20151229005087/en/
Community Health Systems, Inc.Investor Contact:W. Larry Cash,
615-465-7000President of Financial Services and Chief Financial
OfficerorMedia Contact:Tomi Galin, 615-628-6607Senior Vice
President, Corporate Communications, Marketing and Public
Affairs
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