Community Health Systems Update – Novant Health Terminates Hospital Acquisition Deal

Community Health Systems, Inc. (NYSE: CYH) has provided an update on the planned divestiture of two North Carolina hospitals. On June 18, 2024, Novant Health, Inc. decided not to move forward with the acquisition of Lake Norman Regional Medical Center, a 123-bed hospital in Lake Norman, North Carolina, and Davis Regional Psychiatric Hospital, a 144-bed behavioral health facility in Mooresville, North Carolina.

The transactions were originally contemplated by an Asset Purchase Agreement dated February 28, 2023, and Novant had agreed to acquire substantially all of the assets of, and assume certain liabilities from, the CHS Selling Entities related to the two hospitals and certain related businesses.

Following a ruling by the Fourth Circuit Court of Appeals, which issued a temporary injunction blocking the sale to Novant Health pending final resolution of an appeal by the Federal Trade Commission, Novant has informed the company it intends to formally terminate the Purchase Agreement soon.

As a result of Novant's decision, CHS is in the process of evaluating the current operations at Lake Norman Regional Medical Center and Davis Regional Psychiatric Hospital. In the interim, there will be no disruption to patient care or any other immediate changes to the healthcare services offered by these hospitals.

CHS is one of the nation’s largest healthcare companies, with affiliates developing and operating healthcare delivery systems in 40 distinct markets across 15 states. CHS subsidiaries own or lease 71 affiliated hospitals with approximately 12,000 beds and operate more than 1,000 sites of care.

Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.” The market has reacted to these announcements by moving the company's shares 0.8% to a price of $3.15. If you want to know more, read the company's complete 8-K report here.

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