Community Health, Woodbridge to terminate Asset Purchase Agreement

Community Health (CYH) Systems provided an update on the planned divestiture of Commonwealth Health System in Pennsylvania. On November 22, 2024, CHS/Community Health Systems, Inc., a wholly-owned subsidiary of Community Health Systems, Inc., and WoodBridge Healthcare, Inc. mutually agreed to terminate the Asset Purchase Agreement dated July 30, 2024, as amended, between CHS and certain wholly-owned subsidiaries and WoodBridge and certain of its affiliates. Under the terms of the Purchase Agreement, WoodBridge would have acquired substantially all of the assets of, and assumed certain liabilities from, the CHS Selling Entities related to Regional Hospital of Scranton in Scranton, Pennsylvania, Moses Taylor Hospital in Scranton, Pennsylvania, and Wilkes-Barre General Hospital in Wilkes-Barre, Pennsylvania, and certain related businesses. The termination of the Purchase Agreement was due to WoodBridge’s inability to satisfy the funding requirements in the Purchase Agreement because of certain developments affecting the expected proceeds available to WoodBridge from the issuance of publicly offered tax-exempt and taxable bonds. The Company will evaluate future options for Commonwealth Health in light of the termination of this transaction.