Community Health Systems, Inc. (CYH) completed the sale of select ambulatory outreach laboratory assets to Labcorp on December 1, 2025, for approximately $194 million in cash. The transaction covered patient service centers and in‑office phlebotomy locations in 13 states, removing non‑core laboratory operations from CYH’s portfolio.
The sale is a key element of CYH’s debt‑reduction plan, allowing the company to convert a sizable portion of its balance‑sheet liabilities into liquidity. By shedding these assets, CYH can focus capital and managerial attention on its core hospital and outpatient services, which are the primary drivers of revenue and margin growth.
CYH has already completed a series of divestitures in 2024 and 2025 that have generated more than $1 billion in proceeds. The $194 million from the Labcorp deal adds to that pool, strengthening the company’s ability to retire high‑interest debt and support future capital investments in technology and service‑line expansion. The cash infusion also bolsters CYH’s projected free‑cash‑flow outlook for 2025, a metric that management has highlighted as a priority for the year.
Kevin Hammons, CYH’s President and Interim CEO, said the transaction “allows us to focus on core services and improve the overall patient experience.” Labcorp’s Mark Schroeder noted that the acquisition expands access to laboratory services for patients across the 13 states, reinforcing Labcorp’s strategy of consolidating outreach testing under a single, specialized provider.
The divestiture aligns with CYH’s broader strategy of portfolio optimization and debt management. By concentrating on high‑growth, community‑centric care, the company is positioning itself for sustainable profitability while reducing leverage and freeing cash for future growth initiatives.
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