Four Arkansas hospitals to be sold in $112M deal

Four hospitals in Arkansas are poised to get new ownership.

Community Health Systems, Inc., a for-profit system based in Franklin, Tennessee, announced that it had reached a deal to sell the four hospitals to the Freeman Health System.

The deal is another in a series of moves by Community Health Systems to divest some of its hospitals. The system has shed some more of its facilities as it looks to improve its financial performance.

Regulators must still approve the sale, but CHS says it is looking to finalize the transaction in the second quarter of the year.

In the deal, Freeman would acquire Northwest Health, a CHS subsidiary, and its Arkansas hospitals: Northwest Medical Center-Bentonville, a 128-bed facility in Bentonville; Northwest Medical Center-Springdale, a 222-bed facility in Springdale; Willow Creek Women’s Hospital, a 64-bed facility in Johnson; and Siloam Springs Regional Hospital, a 73-bed facility in Siloam Springs.

Freeman would also acquire Northwest Health’s outpatient clinics and practices.

With the transaction, Freeman’s footprint looks to grow considerably. A locally-owned, nonprofit system, Freeman is based in Joplin, Missouri. If the deal is approved, the system would enter Arkansas for the first time.

Currently, Freeman operates four hospital campuses, a behavioral health center, two urgent care centers and dozens of clinics.

Matthew Fry, president and CEO of Freeman Health System, said in a news release that the deal represents “a meaningful moment for Freeman and the communities we serve.”

“While this marks our first expansion into Arkansas, it is a natural extension of our longstanding regional presence,” Fry said. “Northwest Health has a long history of caring for its communities, and we are honored to continue that legacy while bringing forward Freeman’s commitment to compassionate, community-focused care.”

Freeman says as the transaction moves forward, it doesn’t expect any interruptions to patient care.

Meanwhile, CHS continues its efforts to sell more of its facilities. CHS announced in January that it is selling Crestwood Medical Center, a 180-bed hospital in Huntsville, Alabama, to Huntsville Hospital Health System in a $450 million transaction.

CHS reached a definitive agreement to sell three hospitals in northeastern Pennsylvania to the Tenor Health Foundation last fall. Pennsylvania officials approved the transfer of the hospitals' licenses to Tenor in January.

Under that deal, Tenor would acquire Wilkes-Barre General Hospital, a 369-bed facility in Wilkes-Barre; Regional Hospital of Scranton, a 186-bed facility, and Moses Taylor Hospital, a 122-bed hospital in Scranton.

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.

Fitch Ratings has projected that CHS would slow its pace of selling facilities in 2026 and focus more on opportunities for growth in its core market.

Compared to for-profit peers such as HCA Healthcare, Tenet Healthcare Corporation, and Universal Health Services, Inc., CHS has “a weaker operating profile,” Fitch said in a July 2025 report. CHS’ facilities are in smaller cities, suburbs and more rural areas, but Fitch has expected its margins to improve in the near future.

Kevin J. Hammons, director and chief executive officer of CHS, said last month that the system is moving ahead “with solid momentum and an improved financial position.”

In a separate deal, another Arkansas hospital has gained new ownership. Baptist Memorial Health Care in Tennessee has completed the acquisition of Arkansas Methodist Medical Center, a 129-bed hospital based in Paragould.