Spokane's not-for-profit Empire Health Services has agreed to sell its two hospitals to the largest publicly traded hospital company in the United States.

If the deal is approved by regulators, Community Health Systems, a Tennessee-based company that already operates 130 hospitals in 28 states, will take over Deaconess and Valley Hospital medical centers in early 2008.

The sale price was not announced, but as part of the transaction, Community Health would invest $100 million into the hospitals' facilities. Another $100 million would be set aside to create a new community health care foundation - a step required by state law when notfor- profit hospitals are converted into profit-making entities. The foundation would be run by Empire's current board of directors.

Empire has been looking for either a buyer or major investor. It posted a $36 million loss in 2004, but turned around to break even last year.

Some are concerned about potential changes now that the hospitals have a for-profit owner, but Empire Health officials said the new owners will have more resources to provide charity care. The terms of the sale also commit Community Health to keeping the current staff in place.

Between them, Deaconess and Valley employ about 1,700 people, making Empire Spokane's seventh- largest employer. Health care is big business in Spokane, employing more than 28,000 people, which is more than 14 percent of Spokane County's workforce. Sacred Heart Medical Center is Spokane's largest hospital, with more than 3,000 employees.