The 28-hospital system, which is a spinoff of Franklin, Tenn.-based Community Health Systems, said operating revenues decreased 7.7 percent year over year to $486.8 million in the first quarter of this year. The decline was largely attributable to Quorum operating fewer hospitals in the first quarter of 2018 than in the same period a year earlier. The company has sold or closed 10 hospitals since the spinoff from CHS in April 2016.
Quorum said a $7.9 million increase in funds from the California Hospital Quality Assurance Fee program partially offset the decline in revenue.
After factoring in operating expenses and one-time charges, the company ended the first quarter of 2018 with a net loss of $98.5 million, compared to a net loss of $27.2 million in the same period a year earlier.
Quorum is focused on restructuring its portfolio to improve financial performance. Since the company began selling off hospitals in 2016, it has received $84.8 million in net proceeds from divestitures. Quorum used the bulk of those funds — $74.9 million — to pay down the company’s debt.
Quorum is currently targeting an additional $165 million to $215 million in asset sales. As of May 9, the company has signed letters of intent to divest seven facilities. Those potential transactions represent net cash proceeds of more than $100 million.
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