Community Health Systems sold Plateau Medical Center in Oak Hill, West Virginia, to Vandalia Health in a $92 million deal that closed Saturday.
The transaction marks CHS’s exit from West Virginia. It sold the 122-bed Greenbrier Medical Center in Ronceverte in January.
Franklin, Tennessee-based Community Health announced a deal pending January for Charleston, W.Va.-based Vandalia to take over the 25-bed hospital, physician clinics and outpatient operations.
The for-profit system continues to reduce its footprint as it redirects resources to pay down debt and reinvest in the partnership. in February, Chief Financial Officer Kevin Hammons told investors on the earnings call The system is “engaged in ongoing discussions” about other possible transactions.
Reducing contract labor costs is another priority for the system, which has 78 affiliated hospitals and more than 1,000 points of care in 15 states. Those costs have dropped by more than 40% in the last year.
In 2022, Community Health reports net income of $46 million, compared to $230 million the year before. Revenue decreased 1.3% to $12.2 billion and expenses increased 3.9% to $11.4 billion.