PR - Community Health Systems to Sell Nine Facilities to Capella

Community Health Systems, Inc. (NYSE: CYH) this week announced the execution of a definitive agreement to sell nine hospitals to Capella Healthcare, Inc., a privately held, for-profit hospital company headquartered in Franklin, Tennessee. The aggregate purchase price for the transaction, which is structured as a sale of stock, is $315 million. The transaction is subject to the typical closing contingencies for a transaction of this size, and is expected to close on January 31, 2008. The following facilities are included in the transaction:

Hartselle Medical Center, Hartselle, AL, 150 beds

Jacksonville Medical Center, Jacksonville, AL, 89 beds

Parkway Medical Center, Decatur, AL, 108 beds

Woodland Medical Center, Cullman, AL, 100 beds

National Park Medical Center, Hot Springs, AR, 156 beds

St. Mary?s Regional Medical Center, Russellville, AR, 170 beds

Mineral Area Regional Medical Center, Farmington, MO, 135 beds

White County Medical Center, Sparta, TN, 60 beds

Willamette Valley Medical Center, McMinnville, OR, 80 beds

For the last 12 months ended September 30, 2007, the facilities generated an aggregate of approximately $420 million net revenue. The facilities in the transaction are a mix of Triad acquisition facilities and existing Company facilities.  

“We are proud of each of these facilities and very respectful of the contributions made by their dedicated employees, medical staff members and leadership teams to the growth and success of our organization,” said Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems, Inc. “We know that these facilities will continue to flourish and admirably serve their patients and communities under the Capella Healthcare banner. With this transaction, Capella is getting a fine group of properties while we have the opportunity to reduce our outstanding debt and devote more concentrated operating energies to the balance of our hospital portfolio.”

Franklin, Tenn.-based Community Health Systems, Inc. currently owns, leases or operates approximately 127 hospitals in 28 states and one in the Republic of Ireland, with an aggregate of approximately 19,100 licensed beds.