Franklin-based hospital operator Community Health Systems announced late yesterday that it has entered into a definitive agreement to purchase the assets of Memorial Health Systems in York, Pa.
Through the deal, CHS will buy the 100-bed Memorial Hospital, the Surgical Center of York and other outpatient and ancillary services. Among the deal's provisions is a promise to build a larger replacement hospital within five years of the closing date. The deal, which covers about 1,000 workers, is still subject to regulatory approvals.
“As we continue to expand our operations across Pennsylvania, we are excited about the prospect of applying our capital and management resources to help serve this growing community," said CEO Wayne Smith. "The dedicated medical staff and employees at Memorial Hospital are successfully providing patients with high-quality health care services in a competitive environment. We look forward to partnering with them to fulfill their vision for a new and modern hospital facility that will advance clinical quality and the patient experience.”
CHS recently wrapped up its acquisition of the Moses Taylor system in Scranton. Memorial Hospital will be the company's 17th holding in the state, which now accounts for more than 10 percent of its revenues.
Shares of CHS (Ticker: CYH) closed Tuesday trading at $18.38, up more than 4 percent on the day. They've fallen about 7 percent over the past three months.