Community Health Systems (CHS) sold its 80% ownership interest in Tennova Healthcare – Clarksville, a 270‑bed hospital, to Vanderbilt University Medical Center (VUMC) for $600 million, subject to customary net‑working‑capital adjustments.
The sale includes the hospital and related ancillary businesses. VUMC already holds a minority stake; the transaction will give VUMC full ownership. The deal is expected to close in early 2026, pending regulatory approvals and customary closing conditions.
The divestiture is part of CHS’s portfolio optimization program aimed at reducing net debt and focusing on core community‑centric operations. The proceeds will help lower CHS’s net debt to EBITDA ratio. CHS has recently sold other facilities, including Lake Norman Regional Medical Center, ShorePoint Health System, and Cedar Park Regional Medical Center.
In Q3 2025, CHS reported adjusted EBITDA of $376 million, up from $347 million a year earlier, and a 12.2% EBITDA margin. The company projected FY 2025 EPS of $0.80–$0.90 and revenue of $12.4–$12.6 billion. The sale will contribute to debt reduction and support the company’s financial strategy.
VUMC already owned a minority stake in Tennova Healthcare – Clarksville and had acquired the cardiology practice in February 2025. Full ownership will allow VUMC to integrate the facility into its network, expand its reach in Northern Middle Tennessee and Southern Kentucky, and provide advanced medical services closer to patients.
The Clarksville market has seen new hospital approvals from Ascension Saint Thomas and TriStar Health (HCA Healthcare). Tennova Healthcare had opposed these developments. The sale may strengthen VUMC’s position amid increasing competition.
The transaction is subject to customary net‑working‑capital adjustments and regulatory approvals. No additional details on multiples were disclosed.
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