Community Health Systems Completes $110M Sale of Four Arkansas Hospitals to Freeman Health System
Advertisement
The acquisition doubles Freeman Health System’s hospital footprint. Headquartered in Joplin, Missouri, Freeman currently serves communities across Missouri, Kansas, and Oklahoma and is now entering Arkansas for the first time.
Community Health Systems (CHS) has completed the sale of its Northwest Health network in Arkansas to Freeman Health System for $110 million, marking the latest divestiture by the Tennessee-based hospital operator and a major expansion for the Missouri-based nonprofit health system.
The transaction, which closed on June 1, includes four hospitals in Northwest Arkansas: Northwest Medical Center–Bentonville, Northwest Medical Center–Springdale, Northwest Medical Center–Willow Creek Women’s Hospital, and Siloam Springs Regional Hospital. Together, the facilities comprise 487 beds and are supported by outpatient centers, physician practices, more than 1,500 physicians, and approximately 2,000 employees.
The acquisition doubles Freeman Health System’s hospital footprint. Headquartered in Joplin, Missouri, Freeman currently serves communities across Missouri, Kansas, and Oklahoma and is now entering Arkansas for the first time.
The deal was initially announced in March and was subject to regulatory approvals and customary closing conditions. At the time, CHS had estimated the transaction value at approximately $112 million, excluding adjustments related to working capital and assumed finance leases. The finalized transaction was completed at $110 million before certain transaction-related expenses.
The sale is part of CHS’ ongoing portfolio optimization strategy. Since 2019, the company has reduced its hospital portfolio by roughly 35% and currently operates 65 owned or leased affiliate hospitals across the United States.
In recent months, CHS has completed several other hospital transactions, including the sale of a majority stake in Tennova Healthcare–Clarksville in Tennessee to Vanderbilt University Medical Center, the divestiture of three Pennsylvania hospitals to Tenor Health Foundation, and the announcement of a separate $450 million hospital sale to Huntsville Hospital Health System in Alabama.
During its latest earnings call, CHS executives said asset sales have helped improve the company’s financial position, reduce debt levels, and support investments across its remaining facilities. Leadership also indicated that discussions regarding additional potential transactions remain underway.
For the full year 2025, CHS reported total net operating revenue of $12.5 billion, compared with $12.63 billion in 2024. On a same-store basis, revenue increased 4.6%. Adjusted EBITDA for 2025 was $1.53 billion, slightly below the $1.54 billion reported the previous year. The company attributed the decline primarily to lower patient acuity levels and higher medical specialist expenses.
Stay tuned for more such updates on Digital Health News
