Community Health Systems Closes $600 Mn Tennessee Hospital Sale to VUMC

The deal transfers full ownership of Tennova Healthcare–Clarksville and related ancillary businesses to the academic health system.

Community Health Systems (CHS) has completed the sale of its 80% ownership interest in two joint ventures to Vanderbilt University Medical Center (VUMC), finalizing a transaction valued at $623 million before expenses.

The deal transfers full ownership of Tennova Healthcare–Clarksville and related ancillary businesses to the academic health system.

The joint ventures own and operate Tennova Healthcare–Clarksville, a 270-bed hospital employing approximately 1,100 staff, along with physician practices and other outpatient facilities in the Clarksville area. As part of the transaction, CHS also paid $23 million in outstanding balances owed to the subsidiaries at closing.

VUMC said the acquisition expands its regional hospital footprint into Clarksville, one of Tennessee’s fastest-growing cities. The health system will rename the hospital Vanderbilt Clarksville Hospital, and a freestanding emergency department included in the transaction will become Vanderbilt Emergency Sango. Physician practices in Clarksville and nearby communities, including Dover, Pleasant View, and Tiny Town, were also part of the deal.

VUMC stated that it has committed to hiring “substantially all” current employees who are in good standing. Over the next year, the organization plans to increase staffing levels for emergency services at the hospital, including the addition of pediatric emergency medicine specialists in coordination with its children’s hospital. The system also indicated plans to recruit additional physicians and staff to support specialty services in the community.

“I am delighted to welcome the physicians, nurses and staff of Vanderbilt Clarksville Hospital into the Vanderbilt Health family,” said Jane Freedman, M.D., deputy CEO and chief health system officer for Vanderbilt Health, in a statement announcing the completion of the transaction.

The sale follows an agreement announced late last year, when CHS disclosed plans to divest its majority interest in the joint ventures to VUMC for approximately $600 million, pending regulatory approvals and customary closing conditions. VUMC has held a 20% minority stake in the joint ventures since 2021, and the completed transaction marks its fourth regional hospital expansion.

The Clarksville divestiture is part of a broader portfolio realignment by CHS. The company recently disclosed another agreement to sell Commonwealth Health, a three-hospital system in Pennsylvania, to affiliates of Tenor Health Foundation. CHS has indicated that proceeds from recent divestitures will support investments in growth initiatives, operational efficiency, and care delivery across its remaining hospital network.

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