Boston, MA, 04/21/2014 (usastockreport) – Community Health Systems (NYSE:CYH) is looking at a slow of rating upgrades from analysts in the wake of an acquisition of a hospital in Pennsylvania and a lease of another one in Florida.
Community Health Systems Gets Hospitals in Sharon, PA and Ocala, FL
Early in April, Community Health Systems announced that one of its subsidiaries had completed an acquisition of the Sharon Regional Medical Center in Sharon, Pennsylvania. They also announced a long-term lease, through another subsidiary, of the Munroe Regional Medical Center in Ocala, Florida.
The Sharon assets acquired include the 251-bed Sharon Regional Medical Center, its outpatient centers and all the affiliated physician practices.
The 40-year lease of the 421-bed Munroe Regional Medical Center by Community Health Systems includes a newly established clinical affiliation between Munroe Regional and UF Health Shands Hospital. Including this lease, the company now operates 26 hospitals in Florida, based on the number of affiliated hospital facilities.
All told, the company now owns, operates or leases 208 affiliated hospitals spread across 29 states, which together add up to around 31,500 licensed beds.
Wayne T. Smith, chairman and CEO of Community Health Systems, Inc., said that, “The acquisition of Sharon Regional and the lease of Munroe Regional are important, strategic affiliations for our company as we work to develop networks in key states. Both hospitals have served their respective communities with quality care for many years, and we appreciate the opportunity to work with the medical staffs and employees in their commitment to providing quality health services.”
The Rating Upgrades
Obviously, the prestige and stability a publicly traded hospital company such as Community Health Systems, Inc. can gain from getting hold of such prestigious assets is invaluable. Oppenheimer has upgraded CYH from “market perform” to “outperform.” Monness Crespi & Hardt has likewise given it a “buy” rating, and Zacks upgraded it from “underperform” to “neutral.” Stay tuned for more rating upgrades for CYH.