FRANKLIN, Tenn. - Community Health Systems, Inc. (NYSE:CYH), a major healthcare company with a market capitalization of $485 million and annual revenue exceeding $12.5 billion, has entered into a definitive agreement to divest Lake Norman Regional Medical (TASE:PMCN) Center, along with related businesses, to Duke Health. The deal, valued at approximately $280 million, involves the 123-bed hospital situated in Mooresville, N.C. According to InvestingPro analysis, the company currently maintains a "GOOD" overall financial health score.
The transaction is slated for completion in the first quarter of 2025, pending regulatory approvals and customary closing conditions. This sale is part of the additional potential divestitures that were mentioned by the company during its third-quarter 2024 earnings call and in subsequent public statements. With total debt of approximately $12.1 billion and a debt-to-capital ratio of 92%, this divestiture could provide crucial debt reduction opportunities.
Community Health Systems, Inc. is known for its extensive network of healthcare services, operating 69 affiliated hospitals with over 11,000 beds, and managing more than 1,000 care sites across 15 states. These sites include a variety of facilities from physician practices to urgent care centers and ambulatory surgery centers.
The sale of Lake Norman Regional Medical Center is in line with Community Health Systems' strategic plan to streamline operations and focus on markets where it can best serve the healthcare needs of the community. The proceeds from the sale may provide the company with additional capital to invest in its remaining hospitals and healthcare facilities, enhance patient care, and reduce debt.
The company's shares are publicly traded on the New York Stock Exchange with the ticker symbol CYH. Based in Franklin, Tennessee, Community Health Systems continues to be a significant player in the healthcare industry, emphasizing the development and operation of healthcare delivery systems in its served markets. The stock has shown strong momentum with a 43% return over the past year, despite recent volatility. Investors seeking deeper insights into CYH's valuation and growth prospects can access comprehensive analysis through InvestingPro, which offers exclusive financial metrics and expert research reports.
The information for this report is based on a press release statement from Community Health Systems, Inc.
In other recent news, Community Health Systems (CHS) reported mixed third-quarter results, with a net revenue of $3.09 billion, despite natural disasters causing a $7 million hit to revenue. The company's adjusted EBITDA, however, fell to $347 million from the previous year's $360 million. Wells Fargo (NYSE:WFC) and Truist Securities both revised their outlook on CHS, with the former downgrading the stock from Equal Weight to Underweight and the latter reducing the shares target.
These revisions were based on evaluations of the company's future financial performance, including the estimated adjusted EBITDA Less NCI for the year 2026 and the company's balance sheet as of December 31, 2025. Analysts from both firms have highlighted CHS's strategic initiatives, including Project Empower, strategic divestitures, and expansion activities, as key to improving operations.
CHS is also progressing on a $1 billion divestiture plan, with most transactions expected to be signed in the fourth quarter of 2024. These recent developments underscore the company's commitment to enhancing its financial and operational stability amidst challenges.
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