Community Health (CYH) - Get Report said Tuesday it has an agreement to sell five Pennsylvania hospitals to subsidiaries of Reading Health System. The hospitals are the 169-bed Brandywine Hospital in Coatesville, the 148-bed Chestnut Hill Hospital in Philadelphia, the 63-bed Jennersville Hospital in West Grove, the 151-bed Phoenixville Hospital in Phoenixville and the 232-bed Pottstown Memorial Medical Center in Pottstown.
The hospitals will be sold to subsidiaries of Reading Health, which is located in West Reading, Pennsylvania. Upon acquisition, Reading Health will change its company name to Tower Health.
Community Health, one of the nation's largest publicly traded hospitals companies is divesting 30 hospitals after reporting a net loss of $1.7 billion in 2016 in order to reduce its $15 billion debt burden.
Steve Tullman, CEO of Phoenixville Hospital is looking forward to "working together" with Reading Health because it "will strengthen the clinical services available to patients in our community and region".
The deal is expected to transpire at the end of the third quarter and is subject to regulatory approvals.
Community was down 2.14% Tuesday, closing at $9.16 per share.