Community Health Systems will likely have its work cut out for it with its new acquisition.

The nation’s No. 2 for-profit hospital operator announced Monday that a subsidiary has entered into an agreement to buy MetroSouth Medical Center in Blue Island, Ill., outside Chicago. The 224-bed hospital will add to Community Health’s tally of more than 130 facilities nationwide.

Selling MetroSouth is a partnership comprising Transition Healthcare — which, like CHS, is headquartered in Franklin — and New York-based Falcon Investors. That group in 2008 snapped up what was then still called St. Francis Hospital & Health Center and proceeded to invest in new facilities and medical staff. The hospital's latest sale agreement, which calls for CHS to invest at least $20 million at MetroSouth in the next five years, is expected to close in the first quarter of 2012.

“The acquisition of MetroSouth Medical Center will offer a compelling opportunity to expand our operations in Illinois, especially in the northeast section of the state around Chicago,” said CHS CEO Wayne Smith. “The medical staff and employees of this hospital are clearly focused on providing high-quality healthcare services for their patients and we look forward to supporting their efforts with our resources, operations experience and clinical initiatives.”

Despite the work by Transitiion and MSMC, MetroSouth has struggled financially of late, according to the American Hospital Directory. The listing for the hospital shows 2010 revenue of almost $472 million but a net loss of $7.7 million. In a statement, Falcon and Transition said the changing health care market had made it necessary for them to find a deeper-pocketed owner.

"The leadership of MSMC engaged in a thoughtful process to ensure the best possible future for our hospital and determined that affiliating with a larger organization offered our greatest opportunity for long-term success and growth," said Falcon CEO David Reis.

Shares of Community Health (Ticker: CYH) were down about 1 percent as of 11 a.m. Central, changing hands for $17.47. Year to date, they've lost more than 50 percent of their value.