Community Health Systems (CHS), one of the largest publicly traded hospital operators in the United States, has completed the sale of three Tennessee hospitals to Vanderbilt University Medical Center (VUMC) for $600 million in cash. The transaction, which closed on January 27, 2026, includes Cookeville Regional Medical Center (a 225-bed acute care facility), Livingston Regional Hospital (a 25-bed critical access hospital), and Cumberland River Hospital (a 25-bed critical access hospital), along with associated physician practices, outpatient centres, and related assets.

The sale marks the end of a multi-year strategic review by CHS to divest non-core hospitals and reduce its overall debt load. Proceeds will be used primarily to repay outstanding borrowings under its credit facilities, further improving financial flexibility. The divestiture aligns with CHS’s broader strategy of concentrating resources on markets where it holds leading positions and can drive operational efficiency and clinical quality.

For Vanderbilt University Medical Center, the acquisition significantly expands its regional presence in Middle Tennessee, particularly in the Upper Cumberland area. Cookeville Regional Medical Center serves as a major referral hub for the region, offering a full range of acute care services, while the two critical access hospitals provide essential inpatient and emergency care to rural communities. The deal strengthens VUMC’s network, enhances care coordination for patients across the continuum, and supports the organisation’s mission to advance patient care, education, and research throughout Tennessee.

Dr. C. Wright Pinson, Deputy Chief Executive Officer and Chief Health System Officer at VUMC, commented: “This acquisition allows us to extend Vanderbilt’s commitment to high-quality, compassionate care deeper into the communities of Upper Cumberland. We look forward to working with the talented teams at these hospitals to build on their strong legacy while bringing additional resources, expertise, and innovation to improve health outcomes in the region.”

The transaction was subject to customary regulatory approvals, including review by the Tennessee Department of Health and federal antitrust authorities. Both organisations emphasised continuity of care, with all employees of the divested hospitals offered positions within the VUMC system, and existing patient relationships preserved.

The deal reflects ongoing consolidation trends in the U.S. hospital sector, where large academic health systems are acquiring community hospitals to expand geographic reach, secure referral networks, and strengthen their ability to manage population health in value-based care models.