Huntsville (Ala.) Hospital Health System’s proposed $450 million acquisition of Crestwood Medical Center would mark its largest acquisition in recent years, but Moody’s said the system is “well positioned” to integrate the hospital.
The health system signed a definitive agreement on Jan. 20 to acquire the Huntsville-based hospital from Franklin, Tenn.-based Community Health Systems. The deal includes all of the assets tied to the 180-bed hospital and is expected to close in the second quarter of 2026, pending regulatory approvals and other closing conditions.
Moody’s said in a Feb. 10 report that Huntsville Hospital has a strong track record of successful acquisitions that have broadened its clinical and geographic presence in northern Alabama and southern Tennessee.
The credit rating agency said it expects Huntsville Hospital to leverage its supply chain technology and revenue cycle benefits over the long term.
“We expect growth at Huntsville’s flagship campus and the integration of Crestwood to drive improved financial performance in the coming years,” Moody’s said. “While absorbing new debt will take time, we expect the balance sheet to recover toward historical levels over the longer term.”
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