Out-of-State Company Buys Majority Stake in Hoosier Hospitals
A Tennessee-based hospital company with a presence in the state has acquired majority ownership of two more Indiana locations. Community Health Systems Inc. (NYSE: CYH) will have an 80 percent stake in IU Health La Porte Hospital and IU Health Starke Hospital.
Indiana University Health will maintain 20 percent ownership.
Community Health Systems operates nine other Indiana locations, including: Porter Hospital in Valparaiso, Dukes Memorial Hospital in Peru, Bluffton Regional Medical Center, Kosciusko Community Hospital in Warsaw and five in Fort Wayne (Lutheran Hospital, St. Joseph Hospital, Dupont Hospital, Lutheran Rehabilitation Hospital and the Orthopedic Hospital).
Chief Executive Officer Wayne Smith says "we will support the work of these hospitals to improve the overall health of their communities by investing capital and expanding resources for physicians and employees to deliver high quality care. Economic development efforts in Northwest Indiana between Valparaiso and South Bend and a new relationship with IU Health make these hospitals strong additions to our network of facilities."
The company owns, leases or operates close to 200 hospitals throughout the U.S. In August, Community Health Systems announced it would spin off more than three dozen of its hospitals into a new, publicly-traded company called Quorum Health Corp. No locations in Indiana will initially be part of the transaction, which is set to close at the beginning of next year.