Dive Brief:
- Community Health Systems has closed the sale of another hospital as the for-profit health system makes progress paying down its debt.
- On Wednesday, nonprofit Huntsville Hospital Health System acquired Huntsville, Alabama-based Crestwood Medical Center from CHS for $459 million.
- The purchase price is higher than the initial $450 million deal proposed in January, when the two health systems signed a definitive agreement. The final amount was subject to a post-closing working capital adjustment, according to a release, an amount that can fluctuate based on the acquisition target’s assets and liabilities.
Dive Insight:
CHS has embarked on a spree of asset sales as the health system focuses on bringing down a debt load higher than its for-profit peers. CHS divested seven hospitals in 2025 alone, including facilities in Florida, North Carolina and Texas.
The sales seem to be paying off. CHS executives said earlier this year they expect the pace of divestitures to slow as it deleverages its portfolio. In the future, CHS said it would consider selling standalone hospitals without a nearby care network.
Some community members in Huntsville raised concerns that the deal could raise healthcare prices and give HH Health greater market power in the region. Crestwood was one of the last hospitals in the region not owned by Huntsville-based HH Health, which operates hospitals in northern Alabama and southern Tennessee.
Some residents told local television station FOX54 they were worried healthcare services could become monopolized in the Tennessee Valley. They also expressed worries about costs and care quality.
In a press release, Crestwood seemed to acknowledge the concern, noting that some in the community had raised questions about how the the deal would affect competition. Leaders for the health system said Crestwood would continue to operate separately and that patients would retain choice over their care.
“We aren’t changing the things that make Crestwood special,” HH Health CEO Jeff Samz said in the release. “If you’ve chosen Crestwood for your care, that choice remains.”
CHS did not respond to a request for comment by press time.
