Investors Check Out of Community Health

The shares fell Monday after the hospital operator announced a $6.8 billion deal to buy rival Triad

Hospital operator Community Health Systems (CYH) said Mar. 19 that it's going to buy its rival Triad Hospitals (TRI) for around $6.8 billion. The merger would eclipse an earlier, $6.4 billion agreement that Triad had announced on Feb. 5 with the investment firm CCMP Capital Advisors and Goldman Sachs' private equity arm GS Capital Partners. As in Triad's earlier deal, Community Health Systems would also take on the $1.7 billion burden of existing debt that has been choking Triad recently. You could call it a merger among hospital companies that like to grow via acquisitions.

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