Community Health System (CHS) have completed the sale of four South Carolina hospitals based in Chester, Lancaster, Florence and Mullins to the Medical University of South Carolina (MUSC).
CHS subsidiary divested 82-bed Chester Regional Medical Center in Chester, 225-bed Springs Memorial Hospital in Lancaster, 396-bed Carolinas Hospital System in Florence and 124-bed Carolinas Hospital System-Marion in Mullins.
The deal also involves sale of physician clinic operations and outpatient services.
Medical University Hospital Authority assumed the long-term lease and operations of Chester Regional Medical Center as part of the deal.
The deal is valued at $176m. MUSC in its press statement said that it will fund the deal through a $137m U.S. Department of Housing and Urban Development loan and the assumption of certain leases.
The acquisition increases MUSC’s workforce to more than 16,000. It also doubles the number of patient beds in the MUSC Health network.
MUSC president David J. Cole said: “We could not be more excited about what this symbolizes for the future of health care delivery and connectivity for our state.”
MUSC Health chief of affiliations and network development Matt Severance said the hospitals are already well-run and will be a good fit for the network.
“Our mission is to improve health across the state, and to do that, we need to be present in areas across the state,” Severance added.
CHS is divesting hospitals as part of its turnaround plan devised in 2016 to pay down its debt. As part of this plan, it divested 30 hospitals in 2017.