Vanderbilt University Medical Center, CHS reach $600M deal on Tennessee hospital

Vanderbilt University Medical Center has held a minority stake in Tennova Healthcare-Clarksville for years, and now the academic health system is looking to take full ownership of the whole hospital.

The medical center has reached a deal with Community Health Systems, Inc. to acquire the Clarksville hospital and associated clinics and businesses. CHS said it has reached a definitive agreement on a $600 million deal to sell Tennova Healthcare-Clarksville, a 270-bed hospital, and its related operations to VUMC.

CHS says that it hopes to close the transaction in early 2026. The deal was announced last week. Regulators still must sign off on the acquisition.

For Vanderbilt University Medical Center, the deal would help expand its network of regional hospitals in Tennessee. VUMC has held a 20% share of the Clarksville hospital since 2021.

Clarksville is one of Tennessee’s largest cities and the city is growing. Clarksville boasts a population of about 180,000 and has added 14,000 residents since the beginning of the decade. Jeff Balser, MD, president and chief executive officer of VUMC, pointed to the growth of the Clarksville region.

“Expanding our services in Clarksville allows us to better serve the health care needs of this rapidly growing area,” Balser said in a VUMC news release. “As we have in the other communities where we have purchased hospitals, we are making a serious commitment to the citizens of Montgomery County to deliver high-quality care close to home.”

Vanderbilt University Medical Center operates seven hospitals and more than 180 clinics across the Mid-South. The health system is in the midst of its largest expansion to date, with the $500 million Jim Ayers Tower. The first floor opened last month.

In 2021, VUMC acquired two other Tennova Healthcare hospitals, in Shelbyville and Harton, Tennessee.

CHS has also been moving to divest some of its hospitals in recent years as it works to get on better financial footing. The for-profit system, based in Franklin, Tenn., said it was selling some hospitals in an earnings call last month. CHS reported $3.087 billion in revenue in the third quarter of 2025.

Kevin J. Hammons, president and interim chief executive officer of Community Health Systems, Inc., said in a statement last month that the system was pleased with its most recent financial results.

“The refinancing that we completed in August, along with completed and pending divestitures, provides additional runway and liquidity to continue executing on our strategic initiatives and further deleverage,” Hammons said in a statement.

Late last month, CHS said it had reached a definitive agreement to sell three hospitals in northeastern Pennsylvania to Tenor Health Foundation.

CHS also sold Lake Norman Regional Medical Center to Duke Health in a deal that was completed in April. CHS also reached a deal last fall to sell its stake in Merit Health Biloxi, a 153-bed hospital, to Memorial Health System in Mississippi.

CHS also completed a deal in August 2024 to sell Tennova Healthcare-Cleveland to the Hamilton Health Care System, a nonprofit system based in northwest Georgia.

Even with its expansion plans, Vanderbilt University Medical Center announced plans to lay off more than 600 staff members in June, citing cuts in grants from the Trump administration. VUMC said the cuts represent less than 2% of its workforce.