Ascension to Buy CHS’ Texas Hospital Stake for $460 Mn

The deal, announced on April 15, is expected to close later this quarter or by early Q3, subject to regulatory approvals and closing conditions.

Community Health Systems (CHS) is divesting its 80% ownership in Cedar Park Regional Medical Center and related ancillary businesses to Ascension Health for $460 million. 

The deal, announced on April 15, is expected to close later this quarter or by early Q3, subject to regulatory approvals and closing conditions.

The acquisition will give full operational control of the hospital to Ascension’s Texas-based subsidiary, Ascension Seton, which already held a minority stake in Cedar Park Regional. The facility is part of a broader network of 10 hospitals operated by Ascension Seton in central Texas.

Focus on Service Expansion and Operational Integration

Ascension Seton stated that acquiring full ownership of Cedar Park Regional Medical Center will enable greater operational efficiency and expansion of regional services. The health system noted that this transition aligns with its regional healthcare integration and access strategy.

“This isn’t just a milestone—it’s a commitment to the future of healthcare in Cedar Park,” said Eduardo Conrado, president of Ascension. “With full ownership, we can accelerate growth, streamline operations, and introduce new services that meet the community's evolving needs. Above all, this move allows us to further our Mission and ensure that no one is left without the care they need.”

Hospital leadership at Cedar Park also expressed confidence in the continuity and growth of services under Ascension’s full ownership.

“Cedar Park Regional Medical Center has a strong team of providers, including skilled physicians on the medical staff and dedicated employees, who are committed to serving our patients with quality, compassionate care,” said Sean Tinney, CEO of Cedar Park Regional Medical Center. “We are confident that this transition will ensure the continued growth and success of Cedar Park Regional Medical Center. When the transaction is complete, we look forward to working together as part of Ascension Seton, with a focus on expanding healthcare resources and access to care in Cedar Park and our larger region.”

CHS Divestiture Strategy Continues

The sale is part of a broader divestiture strategy announced by CHS leadership during its recent earnings report. While the company reported increased same-store revenue and admissions in 2024, it also posted net losses and confirmed plans to streamline its hospital portfolio.

In recent months, CHS has completed the divestiture of Lake Norman Regional Medical Center in North Carolina to Duke University Health System for $284 million and the ShorePoint Health assets in Florida to AdventHealth for $260 million.

Ascension, meanwhile, has also undertaken portfolio restructuring, including hospital sales in Michigan and Illinois. The Cedar Park acquisition adds to its growing footprint in Texas and aligns with its stated goals of community-focused healthcare delivery.