Community Health Systems (CYH, Financial) has announced a definitive agreement to divest its 80% ownership in Cedar Park Regional Medical Center, located in Cedar Park, Texas. The sale, which includes certain ancillary businesses, will be to subsidiaries of Ascension Health for a total cash consideration of $460 million. This transaction is subject to adjustments based on net working capital and other factors.
With Ascension Health already holding a minority stake in Cedar Park Regional Medical Center, the acquisition will enable it to consolidate full ownership. The completion of the deal is anticipated between late Q2 and early Q3 of 2025, pending necessary regulatory approvals and other closing conditions.
This divestiture aligns with Community Health Systems' ongoing strategic plans mentioned during its fourth quarter and year-end 2024 earnings discussions, as well as subsequent public statements.
