Community Health Systems (CHS) has successfully closed the sale of its 180-bed Crestwood Medical Center in Huntsville, Alabama, along with associated outpatient centres and physician practices, to Huntsville Hospital Health System for $459 million in cash. The transaction was completed on April 1, 2026.
Glimpse:
First announced on January 20, 2026, the deal will generate a pre-tax gain of approximately $185 million ($138 million after tax) for CHS. The acquisition adds a 15th hospital to the nonprofit Huntsville system and is expected to improve care coordination and service capacity in the rapidly growing northern Alabama region.
Community Health Systems, Inc. (NYSE: CYH) has finalised the divestiture of substantially all assets of Crestwood Medical Center, a 180-bed acute care facility located in Huntsville, Alabama. The buyer, Huntsville Hospital Health System, paid $459 million in cash (before certain transaction expenses and subject to working capital adjustment).
The sale, which closed on April 1, 2026, marks the successful completion of a deal first announced on January 20, 2026. For CHS, the transaction is projected to result in a pre-tax gain of roughly $185 million, or $138 million after tax. Following the sale, CHS will continue focusing on optimising its hospital portfolio in core markets.
Huntsville Hospital Health System, one of the largest nonprofit healthcare providers in northern Alabama, will now operate Crestwood Medical Center as its 15th hospital. The acquisition is expected to strengthen local healthcare capacity, enhance care coordination, and better serve the needs of the region’s growing population.
“The acquisition is intended to support care coordination and expand capacity in response to population growth in the region.”
By
HB Team
