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Autumn weather? Many residents say, ‘Bring it!’

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South Wilkes-Barre Playschool holds final graduation

<p>In a statement that prompted national media speculation and spurred a stock drop, for-profit Community Health Systems Inc. &#8212; parent of Commonwealth Health, which owns and operates area hospitals, including Wilkes-Barre General &#8212; hinted at a sale of some or all of its facilities.</p><p>Bloomberg broke the story Friday, citing anonymous sources. &#8220;Community Health Systems Inc., the troubled hospital operator, is exploring a possible sale of its business, people with knowledge of the matter said,&#8221; the website&#8217;s story said.</p><p>Bloomberg noted CHS stocks surged 16 percent by the close of trading, giving the company a market value of $1.4 billion, but also pointed out stocks plunged 75 percent in the past 12 months.</p><p>On Monday, Community Health issued a statement confirming it is exploring options with financial sponsors, but stressing everything is preliminary. &#8220;There can be no certainty that the exploration will result in any kind of transaction,&#8221; the statement said, adding there would be no further comment.</p><p>Stocks dropped nearly 10 percent by the close of trading Monday.</p><p>A flurry of articles from various industry outlets followed. On Monday, Bloomberg pinned the principle problem for CHS on a 2014 acquisition of Health Management Associate for $7.5 billion.</p><p>Bloomberg dubbed it &#8220;a case of bad-dealitis,&#8221; noting Community Health is now saddled with $15.4 billion in debt, much of it tied to the HMA purchase. S&amp;P downgraded the Franklin, Tennessee-based company&#8217;s credit rating to B last month.</p><p>Both Bloomberg and the Nashville Business Journal expressed skepticism Community Health could be sold as is. It is the nation&#8217;s second-largest hospital chain and there are few companies in a position to buy.</p><p>Bloomberg cited the three publicly traded counterparts and their market capitalization &#8212; HCA Holdings at $29 billion, Tenet Healthcare at $2.3 billion and Universal Health Services at $12 billion &#8212; but added &#8220;it doesn&#8217;t seem likely any one of them would stomach a takeover of Community Health on their own.&#8221;</p><p>The Nashville Business Journal also noted Community Health&#8217;s focus on smaller markets makes it less appealing to companies that have zeroed in on larger urban areas.</p><p>Both publications speculated that, if Community Health does sell, it is more likely to be bought piecemeal &#8212; it has already divested several holdings, including announcing the sale of 12 hospitals by the end of this year &#8212; or get scooped up by a private equity firm, taking it off the stock market.</p><p>Commonwealth Health owns and operates Wilkes-Barre General, Moses Taylor and Regional Hospital in Scranton, and Tyler Memorial in Tunkhannock.</p><p>Commonwealth Health spokesperson Tomi Galin said via email the company has no further comment beyond Monday&#8217;s statement.</p><style>
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<div class="neCaption">Community Health Systems Inc. &#8212; parent of Commonwealth Health, which owns and operates area hospitals, including Wilkes-Barre General &#8212; has hinted at a sale of some or all of its facilities. </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2016/09/web1_Hospital_WBGeneral_TLStock.jpg</photo0><caption0>Community Health Systems Inc. &#8212; parent of Commonwealth Health, which owns and operates area hospitals, including Wilkes-Barre General &#8212; has hinted at a sale of some or all of its facilities. </caption0><photoCredit0>Times Leader file photo </photoCredit0></div></div>
<div class="metaInfo"><bylineMeta><p>By Mark Guydish</p><p>mguydish@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Mark Guydish at 570-991-6112 or on Twitter @TLMarkGuydish</p></shirttailMeta></div>

Parent of Commonwealth Health, owner of Wilkes-Barre General Hospital, mulls sale of properties