Sept. 24--A company that owns three Northwest Indiana hospitals announced this week that it is exploring a sale.
Franklin, Tenn.-based Community Health Systems, which owns Porter Regional Hospital in Valparaiso, LaPorte Hospital and Starke Hospital in Knox, has suffered major financial losses and seen its stock price drop significantly over the course of the past year.
"Community Health Systems, Inc. (NYSE: CYH) announced today that the Company, with the assistance of advisors, is exploring a variety of options with financial sponsors, as well as other potential alternatives," the company stated in a news release on Monday.
It went on to state that discussions "are at a very preliminary stage and there is no timeline established for this review." Community Health Systems declined further comment about the sale of its company after issuing Monday's statement.
Its three local hospitals issued this statement in response to a Times inquiry: "La Porte, Porter Regional and Starke hospitals are focused on operating local hospitals that improve the health of our patients and communities. Our full attention has and always will be on providing safe, high-quality care for our patients, and meeting the pressing community health needs before us. Operationally, we are focused on strategic planning for growth across the system, and supporting the clinical excellence and development of healthcare providers and colleagues who take care of our community."
Community Health Systems bought Porter hospital in 2007 and LaPorte and its sister Starke hospital earlier this year. The company had for years been aggressively acquiring hospitals, becoming one of the country's largest for-profit hospital chains. But that strategy may have backfired, as Community Health Systems has recently been taking the opposite approach, by getting rid of hospitals to alleviate debt. Earlier this year, it spun off 38 hospitals into a separate company.
The company's stock price was at $10.20 a share Thursday, down from roughly $60 a year earlier. Community Health Systems sustained a loss of $1.2 billion in the second quarter of 2016.
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