- New York City-based assets manager BlackRock has scooped up another 1.5 million shares in Community Health Systems, bringing its total to 12.4 million shares, or 10.9% of the beleaguered hospital chain, Modern Healthcare reports.
- The score puts BlackRock just behind Chinese billionaire Tianqiao Chen, who is CHS’ biggest shareholder with 15.5 million shares.
- CHS has been unloading hospitals and considering putting itself on the block to bring down a $15 billion debt.
Last week, CHS inked deals to sell 17 hospitals, reducing its debt by about $1.2 billion. That move follows the sale of a four-hospital joint venture and the spin off of 38 hospitals into a separate entity called Quorum Health.
The hospital system has indicated that it may divest up to 30 hospitals in an effort to streamline operations around its regional hospital hubs.
A bleak third-quarter earnings report sent stocks tumbling. CHS posted a net loss of $79 million, compared to a net income of $52 million for last year’s quarter.
Earlier this week, Boston-based Camber Capital Management submitted a regulatory filing with the Securities & Exchange Commission showing it had upped its stake in CHS to 5.5%.
Both BlackRock and Camber Capital filed 13G forms with the SEC, indicating a passive investment.