Ascension to Acquire Full Ownership of Cedar Park Regional Medical Center in $460M Deal

Ascension Health has announced a definitive agreement to purchase Community Health Systems' (CHS) 80% stake in Cedar Park Regional Medical Center for $460 million. The deal, which includes the 126-bed hospital and its ancillary businesses, marks a significant expansion for Ascension in the Central Texas healthcare market.

Deal Details and Strategic Implications

Ascension Seton, a subsidiary of Ascension Texas, will acquire the remaining 80% stake in Cedar Park Regional Medical Center, building on its existing minority interest. The transaction is expected to close this summer, subject to regulatory approvals.

"This isn't just a milestone—it's a commitment to the future of healthcare in Cedar Park," said Eduardo Conrado, president of Ascension. "With full ownership, we can accelerate growth, streamline operations and introduce new services that meet the evolving needs of the community."

The acquisition represents a strategic move for Ascension to strengthen its presence in Central Texas. Ascension Seton currently operates a network of 13 hospitals and more than 200 care sites in the region. The health system views this deal as a significant step toward expanding medical services and improving care access in the growing Cedar Park community.

CHS Divestiture Strategy

For CHS, the sale of Cedar Park Regional Medical Center is part of a broader strategy to deleverage its portfolio and improve its financial position. The Tennessee-based for-profit healthcare provider has been actively pursuing hospital sales to generate cash and streamline its operations.

Tim Hingtgen, CEO of CHS, had previously hinted at this deal during the company's fourth quarter earnings call in February, stating that discussions were underway for potential hospital sales that would generate "meaningful proceeds" for the health system.

This transaction follows recent divestitures by CHS, including the sale of ShorePoint Health System in Florida to AdventHealth for $260 million in March, and the sale of Lake Norman Regional Medical Center in North Carolina to Duke Health for $284 million in April.

Industry Context and Market Trends

The Ascension-CHS deal comes at a time when hospital mergers and acquisitions are generally trending downward amid market volatility. According to a recent report from Kaufman Hall, only five hospital M&A deals were announced in the first quarter of 2025, compared to 20 in the same period last year.

The healthcare industry continues to face challenges, with many systems looking to optimize their portfolios and improve financial performance. CHS, in particular, has struggled financially relative to its peers, reporting a net loss of $516 million in 2024, up from a loss of $133 million in the previous year.

As the industry navigates these challenges, strategic acquisitions and divestitures are likely to play a crucial role in shaping the future landscape of healthcare delivery in the United States.