Community Health Systems 2015 Annual Report Download - page 78

As a result of our current levels of cash, available borrowing capacity, long-term outlook on our debt
repayments, the refinancing of our term loans and our continued projection of our ability to generate cash flows,
we anticipate that we will be able to invest the necessary capital in our business over the next twelve months. We
believe there continues to be ample opportunity for growth in substantially all of our markets by decreasing the
need for patients to travel outside their communities for healthcare services. Furthermore, we continue to benefit
from synergies from our acquisitions and will continue to strive to improve operating efficiencies and procedures
in order to improve our profitability at all of our hospitals.
Acquisitions and Divestitures
On January 1, 2015, we sold Carolina Pines Regional Medical Center (116 licensed beds) in Hartsville, South
Carolina and related outpatient services to Capella Healthcare for approximately $74 million in cash, which was
received at the closing on December 31, 2014. This hospital was required to be divested by the Federal Trade
Commission as a condition of its approval of the HMA merger.
On February 1, 2015, we sold Harris Hospital (133 licensed beds) in Newport, Arkansas and related healthcare
services to White County Medical Center in Searcy, Arkansas for approximately $5 million in cash.
On March 1, 2015, we sold Riverview Regional Medical Center (281 licensed beds) in Gadsden, Alabama to
Prime Healthcare Services, Inc. or Prime, for approximately $25 million in cash. This hospital was required to be
divested by the Federal Trade Commission as a condition of its approval of the HMA merger.
On March 1, 2015, we sold Dallas Regional Medical Center (202 licensed beds) in Mesquite, Texas to Prime
for approximately $25 million in cash.
On April 1, 2015, we sold Chesterfield General Hospital (59 licensed beds) in Cheraw, South Carolina and
Marlboro Park Hospital (102 licensed beds) in Bennettsville, South Carolina and related outpatient services to
M/C Healthcare, LLC for approximately $4 million in cash.
During the three months ended June 30, 2015, we finalized an agreement to terminate the lease and cease
operations of Fallbrook Hospital (47 licensed beds) in Fallbrook, California. In agreeing to terminate the lease,
we received approximately $3 million in cash from the Fallbrook Healthcare District, as the landlord, as
consideration for certain operating assets of the hospital.
On July 31, 2015, we sold certain assets used in the operation of Payson Regional Medical Center (44 licensed
beds) in Payson, Arizona, or Payson, to Banner Health for approximately $20 million in cash. We previously
operated Payson under the terms of an operating lease with Mogollon Health Alliance, Inc., an Arizona nonprofit
corporation, that expired on July 31, 2015. The lease termination and sale closed effective July 31, 2015.
Pursuant to our adoption of Accounting Standards Update, or ASU, 2014-08, this divestiture does not meet the
requirement for presentation in discontinued operations. Income from continuing operations for the year ended
December 31, 2015 includes an impairment charge of approximately $6 million related to the write-off of the
allocated reporting unit goodwill for this hospital.
Effective January 1, 2016, we sold Bartow Regional Medical Center (72 licensed beds) in Bartow Florida, and
related outpatient services to BayCare Health Systems, Inc. for approximately $60 million in cash, which was
received at the preliminary closing on December 31, 2015.
Effective February 1, 2016, we sold Lehigh Regional Medical Center (88 licensed beds) in Lehigh Acres,
Florida, and related outpatient services to Prime for approximately $11 million in cash.
During 2015, we paid approximately $51 million to acquire the operating assets and related businesses of
certain physician practices, clinics and other ancillary businesses that operate within the communities served by
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