JACKSON - West Tennessee Healthcare ("WTH") has announced it has signed an Asset Purchase Agreement to acquire three hospitals from Nashville-based Community Health Systems, Inc. (CHS). The transaction is expected to close in the second quarter of 2018, subject to customary regulatory approvals and closing conditions.
The purchase price is approximately $67 million.
The three CHS hospitals involved in the transaction are:
- Tennova Healthcare - Dyersburg Regional located in Dyersburg
- Tennova Healthcare - Regional Jackson located in Jackson
- Tennova Healthcare - Volunteer Martin located in Martin
Speaking on behalf of the Board of WTH and the health system, West Tennessee Healthcare CEO James E. Ross said the acquisition is good news for consumers, employers, physicians and future patients.
"We will be stronger and better able to meet the healthcare needs of the half million people we are called to serve, said Ross.
The transaction includes all physician clinics and outpatient services associated with the three hospitals, which will also become part of WTH's 18-county network of medical centers and outpatient services.
Upon the closing, West Tennessee Healthcare (WTH) will employ more than 7,000 people and will operate seven hospitals across the region.
"To the employees and physicians associated with Tennova in Dyersburg, Martin and Jackson we look forward to serving with you, side by side, to make healthcare in West Tennessee more coordinated and advanced than ever before," Ross said.
Ross explained that there are still a lot of details to be worked out before closing which should happen in the next few months.
Kaufman, Hall & Associates, LLC is acting as the exclusive financial advisor to West Tennessee Healthcare on this transaction.