CYH · Community Health Systems, Inc.

Community Health Systems, Inc. completed the divestiture of Crestwood Medical Center, a 180-bed hospital in Huntsville, Alabama, along with associated outpatient centers and practices, to Huntsville Hospital Health System. The transaction, which closed on April 1, 2026, was executed pursuant to an Asset Purchase Agreement dated January 20, 2026. The Company received cash consideration of $459 million, subject to standard post-closing working capital adjustments, resulting in an estimated pre-tax gain of $185 million, or $138 million after tax. Transaction expenses totaled approximately $9 million. The divestiture represents a significant disposition for the Company; however, the operations of the Facility do not meet the criteria for classification as discontinued operations under ASC 205. The pro forma financial statements illustrate the estimated impact of the transaction, reflecting the removal of approximately $327 million in annual revenues and the derecognition of $129 million in allocated goodwill. The net proceeds significantly bolster the Company's pro forma cash position to approximately $710 million as of December 31, 2025, while the long-term debt balance remains unchanged at $10.38 billion. Leerink Partners served as the exclusive financial advisor for the transaction.