CHS, Cleveland Clinic Want to Buy Akron Health System
YOUNGSTOWN, Ohio -- Community Health Systems Inc., parent of the ValleyCare Health System of Ohio based here, and the Cleveland Clinic jointly announced late Thursday that the organizations have been selected for exclusive negotiations toward the purchase of certain assets of Akron General Health System.
These include Akron General Medical Center, a 532-bed acute care hospital in Akron; 70-bed Edwin Shaw Rehabilitation Hospital in Cuyahoga Falls; Lodi Community Hospital, a 25-bed critical access hospital west of Akron, and other related health-care 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 companies said.
“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 health-care services within our own organizations,” said Wayne T. Smith, chairman, president and CEO 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 health-care providers that bring together clinical expertise, capital resources, operational experience and innovation.”
Added Toby M. Cosgrove, the Cleveland Clinic's CEO and president, “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. 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.
Through its subsidiaries, CHS owns, leases or operates 135 hospitals in 29 states with an aggregate of approximately 20,000 licensed beds. Community Health Systems Professional Services Corp., a subsidiary of Community Health Systems, provides management services to the affiliated group of hospitals and is party to the agreements with Cleveland Clinic. Shares in Community Health Systems are traded on the New York Stock Exchange under the symbol “CYH.”
Cleveland Clinic is a nonprofit multispecialty academic medical center that integrates clinical and hospital care with research and education. Founded in 1921 by four renowned physicians, Cleveland Clinic has pioneered many medical breakthroughs, including coronary artery bypass surgery and the first face transplant in the United States. 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.
Published by The Business Journal, Youngstown, Ohio.
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