Community Health Systems Completes $459M Sale of Crestwood Medical Center

The transaction, part of CHS’s ongoing divestiture strategy, adds the 180-bed acute care hospital in Huntsville, Alabama, to the nonprofit system’s expanding footprint, bringing its total to 15 hospitals.

Community Health Systems (CHS) has completed the sale of Crestwood Medical Center and its associated facilities to Huntsville Hospital Health System for $459 million, the companies announced on April 1.

The transaction, part of CHS’ ongoing divestiture strategy, adds the 180-bed acute care hospital in Huntsville, Alabama, to the nonprofit system’s expanding footprint, bringing its total to 15 hospitals. The deal generated $459 million in proceeds for CHS before transaction-related expenses.

Huntsville Hospital Health System confirmed that Crestwood Medical Center will continue operating under its existing branding, with no immediate changes to services, medical staff, or operations. The acquisition also includes a freestanding emergency department in Harvest, Alabama, along with clinics and other outpatient facilities tied to the hospital.

As part of early integration efforts, Huntsville Hospital Health System outlined priorities including upgrades to medical equipment and technology, implementation of a unified electronic health record (EHR) system, and improved care coordination across its network. Additional plans include increasing nurse compensation and optimizing use of existing hospital space, including patient rooms.

In a statement, CEO Jeff Samz said the acquisition is intended to support care coordination and expand capacity in response to population growth in the Huntsville region, which has seen significant increases in recent years.

The transaction follows an earlier announcement in January, when CHS signed the agreement to sell Crestwood Medical Center for approximately $450 million, subject to adjustments. The deal was finalized in the second quarter as expected.

The sale is one of several recent divestitures by CHS as it reshapes its hospital portfolio and focuses on financial performance. Recent transactions include the sale of hospitals in Pennsylvania, a majority stake in a Tennessee hospital, and outreach laboratory services. Company executives have indicated that these moves have contributed to improved cash flow and balance sheet deleveraging.

Huntsville Hospital Health System, which operates across northern Alabama and southern Tennessee, continues to expand its regional presence through targeted acquisitions aimed at strengthening local healthcare capacity.

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