Community Health Systems plans to sell its hospital in St. Petersburg, Fla. to Orlando Health.
The sale of 480-bed Bayfront Health St. Petersburg will need approval from the St. Petersburg City Council. Franklin, Tenn.-based CHS announced Thursday it had signed a definitive agreement with not-for-profit Orlando Health, of Orlando.
CHS and Orlando Health expect the deal to close by the end of the third quarter of 2020, subject to regulatory approvals and closing conditions. Financial terms were not disclosed.
CHS said the deal is among those discussed on its first quarter 2020 earnings call. On that call, CHS announced definitive agreements to sell a total of seven hospitals, for which the for-profit company expects to receive $400 million. The deals will complete CHS’ formal divestiture program, which was first announced in 2017.
A Modern Healthcare analysis in February found that while the divestitures seem to have improved CHS’ bottom line, nearly 80% of the hospitals the company sold are operating at a loss, bankrupt or closed.