TOMBALL, Texas, July 28, 2011 /PRNewswire/ — Tomball Hospital Authority (Authority), which owns and operates Tomball Regional Medical Center (TRMC), a nationally recognized provider of comprehensive healthcare services serving the greater Northwest Houston market, today announced that its board of directors has unanimously approved the sale of substantially all of the assets of TRMC to a subsidiary of Community Health Systems, Inc. (NYSE: CYH). The transaction is subject to customary closing conditions and is expected to be completed later this year.

“Following a comprehensive review of strategic alternatives, which included the evaluation of numerous potential partners, I’m pleased to announce the board’s selection of Community Health Systems, an ideal partner to ensure TRMC’s long-term success,” said Lynn LeBouef, President and CEO of Tomball Regional Medical Center. “Our medical staff and employees have worked hard to implement successful performance improvement initiatives to counter the challenges we’ve faced related to the impact of healthcare reform and increased competition from nearby hospitals. After thorough consideration, the sale of TRMC to Community Health Systems is the right next step for our organization to build on this progress and to ensure that we are able to meet the community’s healthcare needs for many years to come.”

Community Health Systems and the Authority have entered into a definitive asset purchase agreement involving the sale of substantially all of TRMC’s assets. Sale proceeds will enable payment in full of all outstanding financial obligations of the Hospital Authority. As a result of the sale, the hospital will convert to taxable status, thereby contributing to a substantial increase in the tax base available to the City of Tomball and Harris County.

Building on its network of 18 affiliated hospitals throughout the State of Texas, Community Health Systems will position TRMC as its flagship health system for the region serving the Tomball and Northwest Houston markets. To that end, Community Health Systems has committed to make capital investments of at least $50 million over five years to expand clinical programs and to renovate and expand existing facilities and infrastructure. This investment will also allow TRMC to acquire advanced medical technologies and pursue development strategies, such as physician recruitment and practice acquisitions. Additionally, the acquisition agreement includes commitments that will provide substantial support to local community efforts, including TOMAGWA Health Care Ministries and Lone Star College.

“This sale is good news for our medical staff, employees, patients and the broader Tomball community,” Mr. LeBouef said. “Community Health Systems is an industry-leader in managing community hospitals such as ours. There are many benefits to TRMC and the Tomball community from this partnership, including access to capital, additional resources and expertise, and the continued provision of quality, cost-effective healthcare.”

Additional covenants in the agreement assure that:

• Active employees in good standing at the time the transaction closes will be hired into their same positions, at the same rate of pay and with their seniority recognized;
• Medical staff credentialing and privileges will be honored;
• The hospital will continue to provide and support indigent care in the community; and,
• A local Board of Trustees, comprised of community leaders and members of the medical staff, will be established.

Navigant Capital Advisors served as financial advisor to Tomball Hospital Authority in this sale transaction. Proskauer Rose LLP served as legal counsel.

About Tomball Regional Medical Center

Recognized for its full continuum of services and remarkable growth over the years, Tomball Regional Medical Center (TRMC) serves a population of 330,000 area residents. TRMC earned a #10 ranking on the U.S. News & World Report Best Hospitals in Houston, Texas list for 2011-12. In addition, HealthGrades ranks TRMC among the:

• Top 5% of America’s hospitals for clinical excellence
• Top 10% in the nation for treatment of stroke
• Top 5% in the nation for overall pulmonary care
• Top 5 hospitals in Texas for overall cardiac care
• Top 5% in the nation for emergency services
• Top 5% in the nation for women’s services

Through exceptional technology and a specialized medical staff, area residents receive a full range of medical services close to home. Services provided include open-heart surgery, neurosurgery, a maternity floor and level III neonatal intensive care unit, inpatient rehabilitation, skilled nursing, and home health care. The 150-acre campus also includes designated specialty centers: the Robert F. Schaper Heart Center, the Texas Wound Center, the Texas Sports Medicine Center, and Cancer Treatment Center. To learn more, explore our website or call 281.401.7500.

About Community Health Systems

Located in Nashville, Tennessee, suburb of Franklin, 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 non-urban and mid-size markets throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 133 hospitals in 29 states with an aggregate of approximately 19,500 licensed beds. Its hospitals offer a broad range of inpatient and surgical services, outpatient treatment and skilled nursing care. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.”

Contact:
Ellen Moskowitz or Giovanna Konicke
Brunswick Group for Tomball Regional Medical Center
212.333.3810

Or

Tomi Galin
Community Health Systems
615.628.6607

SOURCE Tomball Regional Medical Center