Community Health Systems announced on Monday that it has agreed to sell the 421-bed Munroe Regional Medical Center in Ocala, Florida to a subsidiary of Adventist Health System Sunbelt Healthcare Corporation.
The subsidiary, Florida Hospital Ocala Inc., will assume the long-term lease and operations of Munroe Regional Medical Center, subject to the consent of the Marion County Hospital District. If the customary regulatory approvals go smoothly, the deal should close during the third quarter of this year.
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The move comes during a prolonged period of financial struggle for CHS. In the fourth quarter of 2017, it posted a net loss of just over $2 billion, compared to a loss of $220 million for the previous year. The system has seen diminished cash flow and admissions, and a big hit from bad debt.
Because of that, CHS has been divesting hospitals at a speedy clip, and doesn't appear to be slowing down; it sold 30 of its hospitals in 2017 alone. This year, CHS's goal is to make $1.3 billion from its divestitures, in a long-term bid to pay down long-term debt of about $14 billion overall.
In March, Microsoft sued CHS claiming willful copyright infringement and breach of contractual obligations after the health system allegedly facilitated the use of the tech giant's software at some of its recently sold hospitals.
Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com