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Novant Health Signs Letter of Intent Regarding Gaffney Medical Center

Gaffney, SC – October 1, 2014 — Novant Health, Inc. announced today that it has signed a non-binding letter of intent in which a subsidiary of Community Health Systems, Inc. (CHS) of Franklin, Tenn. will assume the management and operations of Novant Health Gaffney Medical Center. The letter of intent is not a final agreement; however, it expresses both parties’ intent to pursue the transaction.

Novant Health Gaffney Medical Center is a 125-bed hospital located in Gaffney, South Carolina.

The agreement under discussion is a restructuring of a joint venture between Novant Health and Health Management Associates (HMA) that included Gaffney Medical Center. CHS acquired HMA earlier this year.

“The healthcare industry is experiencing unprecedented change. As a leading organization, Novant Health is committed to making strategic operational decisions to best respond to these changes and remain on the forefront of affordable, quality care,” said Patrick Easterling, SVP Novant Health consumer operations. “We engaged in a careful review of Gaffney Medical Center. Community Health Systems, a highly regarded national healthcare organization, provides a great opportunity for the long-term future of the hospital, the patients and the community we serve.”

Community Health Systems, Inc. is one of the largest publicly-traded hospital companies in the United States and a leading operator of general acute care hospitals in communities across the country.

The parties are in a period of exclusive negotiation and mutual due diligence during which details about a final agreement will be further defined.

Posted on Wednesday, October 1, 2014