The Company accounts for all transactions that represent business combinations using the acquisition method of accounting, where the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquired entity are recognized and measured at their fair values on the date the Company obtains control in the acquiree. Such fair values that are not finalized for reporting periods following the acquisition date are estimated and recorded as provisional amounts. Adjustments to these provisional amounts during the measurement period (defined as the date through which all information required to identify and measure the consideration transferred, the assets acquired, the liabilities assumed and any noncontrolling interests has been obtained, limited to one year from the acquisition date) are recorded when identified. Goodwill is determined as the excess of the fair value of the consideration conveyed in the acquisition over the fair value of the net assets acquired.

Effective June 1, 2019, one or more subsidiaries of the Company completed the acquisition of Northwest Mississippi Medical Center in Clarksdale, Mississippi. This healthcare system includes 181 licensed beds and other outpatient and ancillary services. The total cash consideration paid for operating assets was approximately $2 million with additional consideration of $9 million in assumed liabilities, for a total consideration of $11 million. This hospital was acquired in conjunction with the bankruptcy proceedings for the previous owner that acquired the hospital from the Company in 2017 as part of an agreement with the local county government associated with its lease of the hospital building. Based on the Company’s final purchase price allocation relating to this acquisition as of December 31, 2019, no goodwill has been recorded. Prior to the completion of the acquisition, the Company initiated a plan to sell this hospital and as such the hospital was classified as held for sale at December 31, 2019 and 2020. This disposition was completed on February 1, 2021.

During the years ended December 31, 2021, 2020 and 2019, one or more subsidiaries of the Company paid approximately $3 million, $1 million and $8 million, respectively, to acquire the operating assets and related businesses of certain physician practices, clinics and other ancillary businesses that operate within the communities served by the Company’s affiliated hospitals. In connection with these acquisitions, during the year ended December 31, 2021, the Company allocated the purchase price to property and equipment, working capital, noncontrolling interests and goodwill, and during the year ended December 31, 2020, the Company allocated the majority of the purchase price to goodwill. In connection with these acquisitions, during the year ended December 31, 2019, the Company allocated approximately $4 million of the consideration paid to property and equipment and net working capital and the remainder, approximately $4 million consisting of intangible assets that do not qualify for separate recognition, to goodwill.

The following table provides a summary of hospitals that the Company divested during the years ended December 31, 2021, 2020 and 2019.

Hospital	Buyer	City, State	Licensed Beds		Effective Date
2021 Divestitures:
Lea Regional Medical Center	Covenant Health System	Hobbs, NM	84		January 1, 2021
Tennova Healthcare - Tullahoma	Vanderbilt University Medical Center	Tullahoma, TN	135		January 1, 2021
Tennova Healthcare - Shelbyville	Vanderbilt University Medical Center	Shelbyville, TN	60		January 1, 2021
Northwest Mississippi Medical Center	Delta Health System	Clarksdale, MS	181		February 1, 2021
AllianceHealth Midwest	SSM Health Care of Oklahoma, Inc.	Midwest City, OK	255		April 1, 2021

2020 Divestitures:
Berwick Hospital Center	Fayette Holdings, Inc.	Berwick, PA		90	December 1, 2020
Brownwood Regional Medical Center	Hendrick Health System	Brownwood, TX		188	October 27, 2020
Abilene Regional Medical Center	Hendrick Health System	Abilene, TX		231	October 27, 2020
San Angelo Community Medical Center	Shannon Health System	San Angelo, TX		171	October 24, 2020
Bayfront Health St. Petersburg	Orlando Health, Inc.	St. Petersburg, FL		480	October 1, 2020
Hill Regional Hospital	AHRK Holdings, LLC	Hillsboro, TX		25	August 1, 2020
St. Cloud Regional Medical Center	Orlando Health, Inc.	St. Cloud, FL		84	July 1, 2020
Northern Louisiana Medical Center	Allegiance Health Management, Inc.	Ruston, LA		130	July 1, 2020
Shands Live Oak Regional Medical Center	HCA	Live Oak, FL		25	May 1, 2020
Shands Starke Regional Medical Center	HCA	Starke, FL		49	May 1, 2020
Southside Regional Medical Center	Bon Secours Mercy Health System	Petersburg, VA		300	January 1, 2020
Southampton Memorial Hospital	Bon Secours Mercy Health System	Franklin, VA		105	January 1, 2020
Southern Virginia Regional Medical Center	Bon Secours Mercy Health System	Emporia, VA		80	January 1, 2020

2019 Divestitures:
Bluefield Regional Medical Center	Princeton Community Hospital Association	Bluefield, WV		92	October 1, 2019
Lake Wales Medical Center	Adventist Health System	Lake Wales, FL		160	September 1, 2019
Heart of Florida Regional Medical Center	Adventist Health System	Davenport, FL		193	September 1, 2019
College Station Medical Center	St. Joseph Regional Health Center	College Station, TX		167	August 1, 2019
Tennova Healthcare - Lebanon	Vanderbilt University Medical Center	Lebanon, TN		245	August 1, 2019
Chester Regional Medical Center	Medical University Hospital Authority	Chester, SC		82	March 1, 2019
Carolinas Hospital System - Florence	Medical University Hospital Authority	Florence, SC		396	March 1, 2019
Springs Memorial Hospital	Medical University Hospital Authority	Lancaster, SC		225	March 1, 2019
Carolinas Hospital System - Marion	Medical University Hospital Authority	Mullins, SC		124	March 1, 2019
Memorial Hospital of Salem County	Community Healthcare Associates, LLC	Salem, NJ		126	January 31, 2019
Mary Black Health System - Spartanburg	Spartanburg Regional Healthcare System	Spartanburg, SC		207	January 1, 2019
Mary Black Health System - Gaffney	Spartanburg Regional Healthcare System	Gaffney, SC		125	January 1, 2019

The following table discloses amounts included in the consolidated balance sheets for the hospitals classified as held for sale as of December 31, 2020 (in millions). Other assets, net primarily includes the net property and equipment for hospitals held for sale. No hospitals were classified as held for sale as of December 31, 2021 and no divestitures or potential divestitures meet the criteria for reporting as a discontinued operation as of December 31, 2021, 2020, or 2019.

Financial and statistical data reported in this Form 10-K includes operating results for the hospitals that were divested during 2021, 2020 and 2019 through the effective date of each respective transaction. Summary financial results of these hospitals for the periods included in the accompanying consolidated statements of income (loss) are as follows (in millions):

The operating results for these divested hospitals included net impairment charges and (gain) loss on disposal of approximately $29 million, $(80) million and $(5) million during the years ended December 31, 2021, 2020 and 2019, respectively.

On November 30, 2020, one or more subsidiaries of the Company completed the sale of 50% ownership interest in Merit Health Biloxi (153 licensed beds) and its associated healthcare businesses in Biloxi, Mississippi to Memorial Properties, Inc., an affiliate of Memorial Hospital of Gulfport pursuant to the terms of a definitive agreement which was entered into on October 12, 2020. Merit Health Biloxi and its associated healthcare businesses remain consolidated entities of the Company.

Effective September 30, 2020, one or more affiliates of the Company finalized an agreement to terminate the lease and cease operations of Shands Lake Shore Regional Medical Center (99 licensed beds) in Lake City, Florida, including transferring leased assets back to the landlord, the Lake Shore Hospital Authority. The Company recorded an impairment charge of approximately $3 million during the year ended December 31, 2020 in conjunction with exiting the lease to operate this hospital.