Community Health Systems Announces Definitive Agreement to Sell Huntsville, Alabama, Hospital to Huntsville Hospital Health System
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definitive agreementregulatory
A definitive agreement is a formal, legally binding document that outlines the final terms and conditions of a deal or transaction, such as a sale or partnership. It acts like a detailed contract that confirms all parties have agreed on the key details, making the deal official. For investors, it signals that the agreement is settled and moving toward completion, providing clarity and security about the transaction.
net working capitalfinancial
Net working capital is the amount left when you subtract a company’s short-term bills (like accounts payable and short-term loans) from its short-term assets (cash, money owed to it, and inventory). Think of it as the cash cushion a business has to keep daily operations running — a bigger cushion means fewer short-term funding worries, while a small or negative number can signal pressure to raise cash or cut activity, which matters to investors assessing stability and short-term risk.
finance leasesfinancial
A finance lease is a long-term rental arrangement where a company takes on most of the risks and rewards of owning an asset—like equipment or property—while making scheduled payments instead of a single purchase. Think of it like buying something on an installment plan: the item appears on the company’s books as an asset and a matching obligation, which affects reported debt, profits and cash flow and therefore can change how investors view the company’s financial strength and valuation.
FRANKLIN, Tenn.--(BUSINESS WIRE)--
Community Health Systems, Inc. (NYSE: CYH) announced today that a subsidiary of the Company has signed a definitive agreement to sell substantially all of the assets of 180-bed Crestwood Medical Center in Huntsville, Alabama, and its associated outpatient centers and practices, to Huntsville Hospital Health System for $450 million, subject to adjustment for net working capital and any finance leases assumed by the buyer.
The transaction is expected to close in the second quarter of 2026, subject to closing conditions.
This transaction is among the additional potential divestitures discussed on the Company’s third quarter 2025 earnings call and in subsequent public appearances.
Leerink Partners is acting as exclusive financial advisor to the Company for the transaction.
About Community Health Systems, Inc.
Community Health Systems, Inc. is one of the nation’s largest healthcare companies. The Company’s affiliates are leading providers of healthcare services, developing and operating healthcare delivery systems in 36 distinct markets across 14 states. The Company’s subsidiaries own or lease 69 affiliated hospitals with more than 10,000 beds and operate more than 1,000 sites of care, including physician practices, urgent care centers, freestanding emergency departments, occupational medicine clinics, imaging centers, cancer centers and ambulatory surgery centers. 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.
