Community Health Systems falls short of 2018 hospital divestiture target

SAN FRANCISCO—Neighborhood Well being Techniques generated $400 million in gross proceeds on hospital divestitures in 2018, lower than half of its $1.three billion goal, leaders from the hospital chain stated Wednesday.

Thomas Aaron, the Franklin, Tenn.-based hospital chain’s CFO, confirmed earlier than an viewers on the J.P. Morgan Healthcare Convention on Wednesday afternoon that the corporate fell in need of its 2018 aim by about $900 million. The hospital chain had repeated the aim on a number of events final yr, together with in its third quarter outcomes.

CHS additionally missed its aim of divesting hospitals in 2018 that had accounted for $2 billion in mixed income in 2017. The 13 hospitals CHS bought final yr had $1.1 billion in mixed 2017 income, Aaron stated. That $2 billon aim was additionally cited in CHS’ third quarter outcomes.

CHS’ leaders didn’t body these outcomes as having missed their 2018 objectives, nonetheless.

“That concentrate on will proceed into 2019 and we anticipate to finish that,” Aaron stated.

It is not clear whether or not CHS fell brief as a result of it did not get as a lot for the divested hospitals because it had deliberate, whether or not the corporate did not promote as many hospitals because it had deliberate to promote or a mix of each.

Aaron famous CHS has a definitive settlement on 4 hospitals in South Carolina it expects will shut within the first quarter.

Wayne Smith, CHS’ CEO, stated through the firm’s query and reply session that it is going to be good to get previous the divestitures.

“They clearly are a little bit little bit of a distraction,” he stated. “It takes lots of assets to do that.”


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