Press release from Business Wire
Community Health Systems and Cleveland Clinic Enter into Exclusive Negotiations Toward A Joint Venture Purchase of Akron General Health System
Thursday, August 22, 2013
Community Health Systems and Cleveland Clinic Enter into Exclusive Negotiations Toward A Joint Venture Purchase of Akron General Health System17:00 EDT Thursday, August 22, 2013
FRANKLIN, Tenn. & CLEVELAND (Business Wire) -- 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.”
About Cleveland Clinic
Cleveland Clinic is a nonprofit multispecialty academic medical center that integrates clinical and hospital care with research and education. Located in Cleveland, Ohio, it was founded in 1921 by four renowned physicians with a vision of providing outstanding patient care based upon the principles of cooperation, compassion and innovation. Cleveland Clinic has pioneered many medical breakthroughs, including coronary artery bypass surgery and the first face transplant in the United States. U.S.News & World Report consistently names Cleveland Clinic as one of the nation's best hospitals in its annual “America's Best Hospitals” survey. About 2,800 full-time salaried physicians and researchers and 11,000 nurses represent 120 medical specialties and subspecialties. Cleveland Clinic Health System includes a main campus near downtown Cleveland, eight community hospitals and 18 Family Health Centers in Northeast Ohio, Cleveland Clinic Florida, the Lou Ruvo Center for Brain Health in Las Vegas, Cleveland Clinic Canada, and currently under construction, Cleveland Clinic Abu Dhabi. In 2010, there were 4 million visits throughout the Cleveland Clinic health system and 167,000 hospital admissions. Patients came for treatment from every state and from more than 100 countries. Visit us at www.clevelandclinic.org. Follow us at www.twitter.com/ClevelandClinic.
Statements contained in this news release regarding expected operating results, acquisition transactions or divestitures and other events are forward-looking statements that involve risk and uncertainties. Actual future events or results may differ materially from these statements. Readers are referred to the documents filed by Community Health Systems, Inc. with the Securities and Exchange Commission, including the Company's annual report on Form 10-K, current reports on Form 8-K and quarterly reports on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Community Health Systems Contacts:
Tomi Galin, 615-628-6607
Larry Cash, 615-465-7000
Cleveland Clinic Contacts:
Eileen Sheil, 216-444-8927
Heather Phillips, 216-445-4517