Catholic systems acquire hospitals from Community Health Systems

December 1, 2019

Over the past three years, Community Health Systems of Franklin, Tenn., has been completing what it calls a "portfolio rationalization and deleveraging strategy."

The publicly traded hospital company has shed more than 80 hospitals since 2016, according to a HealthLeaders Media analysis. Currently, Community Health has 102 affiliated hospitals in 18 states. The system has a total of about 17,000 beds.

This year, two ministry systems, Bon Secours Mercy Health and CommonSpirit Health, have been among those acquiring the divested facilities.

Bon Secours Mercy Health announced its intent to purchase three hospitals in southeastern Virginia from Community Health. The hospitals would become part of the Bon Secours Mercy Health Atlantic Group and would become Catholic hospitals, according to Bon Secours Mercy Health.

The hospitals are:

  • The 300-bed Southside Regional Medical Center in Petersburg, which has three professional schools on campus and seven satellite outpatient centers.
  • The 105-bed Southampton Memorial Hospital in Franklin.
  • The 80-bed Southern Virginia Regional Medical Center in Emporia.

Bon Secours Mercy said in an Oct. 28 media release that it has an asset purchase agreement in place and is working toward a definitive agreement. It expects the sale to be finalized by the end of the year.

John Starcher, president and chief executive of the 43-hospital Bon Secours Mercy Health, said in the release that the system will continue to invest in the health and well-being of residents of southeastern Virginia. Bon Secours Mercy has nine hospitals in Virginia.

In August, CHI St. Joseph Health of Bryan, Texas, acquired the 167-bed College Station Medical Center of College Station, Texas, from Community Health. CHI St. Joseph is part of the 142-hospital CommonSpirit Health.

The medical center was renamed CHI St. Joseph Health — College Station Hospital and it now is operated as a Catholic nonprofit facility. Its physician clinics also have adopted the CHI St. Joseph Health moniker.

With the acquisition, CHI St. Joseph has five hospitals in the region and more than 50 clinics and other outpatient sites. The College Station hospital, which is a Level III Trauma Center, is within 10 miles of CHI St. Joseph's flagship facility, CHI St. Joseph Health Regional Hospital of Bryan. That 236-bed regional hospital is a Level II Trauma Center.


Copyright © 2019 by the Catholic Health Association of the United States

For reprint permission, contact Betty Crosby or call (314) 253-3490.