Alabama hospital to be sold in $450M deal

In recent years, Community Health Systems, Inc. has been divesting some of its hospitals, and now the system is poised to sell another facility.

The for-profit system has reached a definitive agreement to sell the Crestwood Medical Center in Huntsville, Alabama to Huntsville Hospital Health System. Huntsville has agreed to buy the 180-bed hospital in a $450 million transaction.

Jeff Samz, president and CEO of the Huntsville Hospital Health System, said in a news release that the deal reflects the organization’s vision of expanding services in the region.

“Through this acquisition, Huntsville Hospital Health System is continuing to invest in the specific health care needs of our patients and community and in our employees,” Samz said.

“HH Health has served this community for more than a century,” he said. “We are committed to building on this legacy and continuing to invest in local access to high-quality, compassionate care.”

Regulators must still sign off on the transaction. Huntsville and CHS both said they hope to close the deal in the second quarter of 2026. Under the deal, Huntsville would also acquire a free-standing emergency department and other clinics and outpatient facilities.

Samz also pointed to the growth in Huntsville. The city of 230,000 has added 50,000 residents since 2010, according to Census data.

“As our community continues to grow, we listen carefully to patient experiences and expectations,” Samz said in a statement. “Our community wants and deserves options for more locally coordinated services and care.”

Justin Serrano, CEO, Crestwood Medical Center, touted the prospect of “locally-coordinated care in Huntsville.”

“This is a great opportunity for our patients and the community,” Serrano said in a statement.

Huntsville said there were no plans for changes in patient care or medical staffing.

Responding to a resident’s concern about the prospect of reducing competition and choices, Huntsville Hospital said in a post on Facebook that the acquisition of Crestwood would help manage patient capacity and improve access in high-demand areas, including emergency care and maternity services. The system also said it would develop a single electronic medical record system.

The Huntsville system is anchored by Huntsville Hospital, an 881-bed hospital that serves communities in northern Alabama and southern Tennessee

Based in Franklin, Tennessee, CHS operates 69 hospitals in 14 states. The system has been divesting some of its hospitals over the past few years.

Last fall, CHS reached a definitive agreement to sell three hospitals in northeastern Pennsylvania. CHS also sold two Florida hospitals, and their associated clinics, to AdventHealth in a $265 million deal. CHS has also sold hospitals in Mississippi and in Tennessee.

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