Throughout 2025, several major health systems have been focusing on downsizing their portfolios by divesting hospitals and other lines of business. Some transactions were from systems seeking to pay down debt, others resulted from bankruptcy proceedings and a number from systems exiting non-core markets. In our LevinPro HC database, we have tracked more than 20 divestments from health systems across various sectors, such as Hospitals, Home Health & Hospice and Physician Medical Groups. Here is a selection of the top health System divestments of 2025 so far.
Community Health Systems Selling Spree
If it seems like Community Health Systems (CHS) has been selling hospitals and other subsidiaries constantly for more than a decade, it’s because they have. The publicly traded health system has been working to reduce its long-term debt ($10.6 billion as of the end of the third quarter of 2025) and invest in more capital-efficient service lines, such as outpatient care and ambulatory surgery centers.
Just since 2020 alone, the company has sold 35 hospitals, including five this year. In mid-April, CHS sold its 80% stake in Cedar Park Regional Medical Center to Ascension for $460 million. The facility, based in Cedar Park, Texas, had 126 beds at the time of sale and generated $180.9 million in revenue in 2023.
In the CHS’s Q3:25 earnings report, it announced two more sales. First, it disclosed the sale of its 80% stake in a pair of joint ventures that operated Tennova Healthcare – Clarksville in Tennessee. The buyer, Vanderbilt University Medical Center, paid $600 million in cash for the stake.
After a failed attempt to sell the hospitals to WoodBridge Healthcare, Inc. in 2024, CHS finally found a buyer in Tenor Health Foundation for Wilkes-Barre General Hospital, Moses Taylor Hospital, and Regional Hospital of Scranton. The three hospitals collectively generated $477.2 million in net patient revenue in 2024 and $4.32 million in EBITDA.
Tenor Health Foundation was formed to identify, own, manage and turn around financially challenged hospitals. No terms were disclosed in this transaction, but Woodbridge was prepared to pay $115 million for the three hospitals in the failed deal.
Mayo Clinic Health System Divests Midwest Hospice Operations
In two separate deals, the Mayo Clinic Health System sold parts of its hospice operations in the upper Midwest region of the United States to St. Croix Hospice LLC. In January, it divested its hospice operations in Minnesota, and in August, it sold its operations in Wisconsin.
St. Croix Hospice is a provider of hospice services across the Midwest. Its footprint includes approximately 60 branches in ten states, and its 1,470 employees serve nearly 3,500 patients. It has been a portfolio company of H.I.G. Capital since October 2020.
Bon Secours Mercy Health Exits Joint Venture in New York
Westchester Medical Center Health Network (WMCHealth) and Bon Secours Mercy Health ended their joint venture partnership in September, prompting the latter to take full ownership of the three hospitals they had jointly managed.
WMCHealth acquired St. Anthony Community Hospital, Bon Secours Community Hospital and Good Samaritan Hospital of Suffern, all serving the Rockland and Orange County areas in New York. Collectively, the hospitals generated $518 million in revenue in 2024 and have a total of 432 beds among them. The deal also includes multiple nursing homes.
Hartford Healthcare Wins Bid for Prospect Hospitals
When Prospect Medical Holdings filed for Chapter 11 Bankruptcy in January, the health system stated it wanted to exit the East Coast markets and focus on California. That process has been rocky, to put it mildly, especially in Connecticut.
In 2022, Yale New Haven Health (YNHH) signed a $435 million agreement to acquire three of Prospect’s hospitals in Connecticut: Waterbury Hospital, Manchester Memorial Hospital and Rockville General Hospital. However, the deal became continuous between the two parties and eventually fell through, with YNHH paying $45 million to settle the dispute and exit the agreement.
Fast forward to late October, and Hartford Healthcare (another major health system in Connecticut) emerged as a successful bidder to purchase Rockville General Hospital and Manchester Memorial Hospital for $86.1 million.
As for Waterbury Hospital, UConn Health has been designated as the stalking horse bidder, offering around $35 million. No specifics on the timeline for that deal have been disclosed, however.
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