Community Health Systems (CHS) has wrapped a deal to divest its 80% interest in two joint ventures to Vanderbilt University Medical Center (VUMC), the organizations announced Monday morning.
The joint ventures own and operate Tennova Healthcare – Clarksville, a 270-bed hospital with 1,100 staff, and other ancillary businesses in the major Tennessee city. CHS received $623 million before certain transaction expenses for the interests, with CHS also paying $23 million of owed balances to the subsidiaries upon completion of the transaction.
VUMC, in its announcement, said it will be renaming the hospital and a freestanding emergency room to Vanderbilt Clarksville Hospital and Vanderbilt Emergency Sango, respectively. It also highlighted physician practices in Clarksville plus nearby Dover, Pleasant View and Tiny Town that were included in the deal.
VUMC said it has committed to hiring "substantially all current employees who are in good standing," and said in the coming year that it plans to boost staffing for the hospital's emergency services, including the addition of pediatric emergency medicine specialists in coordination with the academic system's children's hospital. More broadly, the organization hopes to recruit physicians and staff to bolster community specialty services.
“I am delighted to welcome the physicians, nurses and staff of Vanderbilt Clarksville Hospital into the Vanderbilt Health family and look forward to working closely with the hospital’s medical staff and members of the local health care community to ensure we excel at meeting their needs as caregivers as we pursue the goal of improving the health and well-being of the patients we serve,” Jane Freedman, M.D., deputy CEO and chief health system officer for Vanderbilt Health, said in a statement.
Nov. 3
Community Health Systems selling majority interests in Tenn. joint ventures to VUMC for $600M
Community Health Systems has announced another hospital sell-off, this time to Vanderbilt University Medical Center (VUMC) for $600 million.
The definitive agreement, announced late last week, involves CHS’ 80% ownership interest in two joint ventures it has with the academic provider, which holds the remaining 20%. These joint ventures are owned and operated Tennova Healthcare – Clarksville, a 270-bed hospital, and ancillary businesses in Tennessee’s fifth largest city including a freestanding emergency department and physician practices.
The deal is expected to close in early 2026 pending regulatory approvals and closing conditions, according to the for-profit hospital chain. VUMC, in its announcement, said the acquisition boosts its broader strategy to bring high-quality and cost-effective care to community settings.
“Expanding our services in Clarksville allows us to better serve the health care needs of this rapidly growing area,” Jeff Balser, M.D., Ph.D., president and CEO of VUMC and dean of the Vanderbilt University School of Medicine, said in an announcement. “As we have in the other communities where we have purchased hospitals, we are making a serious commitment to the citizens of Montgomery County to deliver high-quality care close to home.”
Nashville, Tennessee-based VUMC has held its 20% minority interests in the joint ventures since 2021. The pending acquisition would be its fourth regional hospital expansion.
The academic system said there will be no care interruptions during the transaction and that it is committed to hiring “substantially all employees of Tennova Healthcare-Clarksville who are in good standing when transfer of the hospital’s ownership is complete.”
News of the deal came days after CHS disclosed another definitive agreement to sell Commonwealth Health, a three-hospital system in Pennsylvania, to affiliates of recently formed nonprofit Tenor Health Foundation. Financial terms of that deal were not disclosed, though, a year prior, the for-profit had failed to close a $120 million deal for the facilities with WoodBridge Healthcare.
CHS said both of the deals were among the potential additional divestures executives teased during last month’s third-quarter earnings call. The company, which owns or leases 70 affiliated hospitals and beat investors’ expectations on high same-store revenue gains, said the proceeds and other sources of unrestricted liquidity will fuel investments into growth, efficiency and quality of care.