Community Health Systems, Inc. (NYSE: CYH) and Cleveland Clinic announced today that the organizations have been selected for exclusive negotiations toward the purchase of certain assets of Akron General Health System, including Akron General Medical Center, a 532-bed acute care hospital in Akron, Ohio; 70-bed Edwin Shaw Rehabilitation Hospital in Cuyahoga Falls, Ohio; Lodi Community Hospital, a 25-bed critical access hospital approximately 30 miles west of Akron, and other related healthcare facilities and services. A subsidiary of Community Health Systems, Inc. and the Cleveland Clinic Foundation will form a new limited liability company to complete the proposed transaction.
“The strategic alliance formed between Cleveland Clinic and Community Health Systems earlier this year is gaining momentum as we work together to advance high-quality, cost-effective healthcare services within our own organizations,” said Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems, Inc. “Our relationship also has garnered interest from other organizations that recognize a unique opportunity to benefit from the compelling collaboration between two healthcare providers that bring together clinical expertise, capital resources, operational experience and innovation.”
“We are pleased to announce this proposed affiliation with Akron General Health System. Cleveland Clinic has long-served patients from the Akron area, and this will allow us to expand our clinical services in the region as Community Health Systems grows its presence in Ohio,” said Toby M. Cosgrove, M.D., chief executive officer and president of Cleveland Clinic. “For Akron General, this partnership means access to tremendous resources as it continues to deliver on its mission of providing high-quality healthcare services to patients.”
The parties will now complete the due diligence process and work toward finalizing terms of a definitive agreement. Completion of the proposed transaction will be subject to customary closing conditions and regulatory approvals.
About Community Health Systems, Inc.
Located in the Nashville, Tennessee, suburb of Franklin, Community Health Systems, Inc. is one of the largest publicly-traded hospital companies in the United States and a leading operator of general acute care hospitals in non-urban and mid-size markets throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 135 hospitals in 29 states with an aggregate of approximately 20,000 licensed beds. Its hospitals offer a broad range of inpatient and surgical services, outpatient treatment and skilled nursing care. Community Health Systems Professional Services Corporation, a subsidiary of Community Health Systems, Inc., provides management services to the affiliated group of hospitals and is party to the agreements with Cleveland Clinic. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.”