Watsonville Community Hospital’s chief expressed enthusiasm Tuesday about the parent company’s decision to spin off the 106-bed hospital and 37 other similar-sized hospitals. The change expected to occur in the first quarter of 2016. (Santa Cruz Sentinel)

Wayne T. Smith, chairman of CEO of Community Health Systems, a for-profit operator of 198 hospitals and based in Franklin, Tennessee, said the move aims to create two companies that are “better positioned to take advantage of growth opportunities while creating additional value for our stockholders.”