Community Health Systems to Sell Ocala Hospital to Adventist Health

OCALA, FL—Community Health Systems, Inc. of Franklin, TN, which has been selling some of its hospital assets, reports it has signed a definitive agreement to sell the 421-bed Munroe Regional Medical Center here to a subsidiary of Adventist Health System Sunbelt Healthcare Corp.

No financial terms of the transaction were disclosed. Part of the deal will involve Adventist Health subsidiary Florida Hospital Ocala, Inc. to assume the long-term lease and operations of Munroe Regional Medical Center. The transfer of the lease is subject to the consent of the Marion County Hospital District, CHS states in an announcement. Kaufman, Hall & Associates, LLC is acting as the exclusive financial advisor to Altamonte Springs, FL-based Adventist Health System in the deal that is expected to close in the third quarter of 2018.

Once the transaction closes, the Munroe Regional Medical Center will be the second largest hospital in Adventist’s West Florida division and the third largest in the Adventist Health System and marks its entrance into Marion County.

“Florida Hospital is a respected health care provider and becoming a part of their organization creates an exciting opportunity for the hospital to become part of a large regional network,” says Jim O’Loughlin, CEO of Munroe Regional Medical Center. “Working together, we can continue the hospital’s commitment to care for the Marion County community, including the indigent and uninsured population, and to provide our patients with access to quality health care services.”

The transaction includes Munroe Regional Medical Center at 1500 SW 1st Ave., a free-standing emergency department and other outpatient locations.

“We are excited to bring our unique brand of whole-person, faith-based care to this community,” states Mike Schultz, president and CEO, West Florida division of Adventist Health System. “Munroe Regional Medical Center has a long history in this community and is a valuable asset to the region. We look forward to building on that and giving patients greater access to the Florida Hospital network of care.”

The Florida Hospital network includes 27 hospitals, 10 of which are in the West Florida Division and includes Florida Hospital Carrollwood, Florida Hospital at Connerton Long Term Acute Care, Florida Hospital Dade City, Florida Hospital Heartland Medical Center Lake Placid, Florida Hospital Heartland Medical Center Sebring, Florida Hospital North Pinellas, Florida Hospital Tampa, Florida Hospital Wauchula, Florida Hospital Wesley Chapel and Florida Hospital Zephyrhills.

Adventist Health operates 46 hospitals in nine states and employs more than 80,000 workers.

The deal to sell Munroe Regional Medical Center comes less than a month from when CHS announced it had signed a definitive agreement to sell three Tennessee hospitals—the 225-bed Tennova Healthcare-Dyersburg Regional in Dyersburg, the 150-bed Tennova Healthcare-Regional Jackson in Jackson and the 100-bed Tennova Healthcare-Volunteer Martin in Martin—to West Tennessee Healthcare. That transaction is expected to close in the second quarter of this year.

Earlier this month, CHS announced it had completed its divestiture of the 120-bed Bayfront Health Dade City in Dade City, FL to Adventist Health System. The sale became effective on April 1. In 2017, the company sold off its interest in 30 hospitals.

At present, CHS, through its subsidiaries, owns, leases or operates 126 affiliated hospitals in 20 states with an aggregate of approximately 21,000 licensed beds.