Quorum Health sees net loss widen to $29.2M, plans to sell more hospitals

Brentwood, Tenn.-based Quorum Health ended the third quarter of 2017 with a net loss, but the company hopes to improve its financial picture by continuing to restructure its portfolio.

The 31-hospital system, which is a spinoff of Franklin, Tenn.-based Community Health Systems, reported revenues of $499.3 million in the third quarter of this year, down from revenues of $543.9 million in the same period of 2016. Quorum said hospital divestitures and a drop in revenues under the California Hospital Quality Assurance Fee program negatively affected revenue growth in the third quarter of this year.

After factoring in a decrease in expenses year over year, Quorum ended the third quarter of 2017 with a net loss of $29.2 million, compared to a net loss of $7 million in the same period of 2016.

Quorum is focused on restructuring its portfolio to improve its financial performance. The company began a divestiture spree last year, selling Sandhills Regional Medical Center in Hamlet, N.C., and Barrow Regional Medical Center in Winder, Ga., in the fourth quarter of 2016. From March through September this year, the company sold Cherokee Medical Center in Centre, Ala., Trinity Hospital of Augusta (Ga.)Sunbury (Pa.) Community Hospital and Lock Haven (Pa.) Hospital. In October, the company divested L.V. Stabler Memorial Hospital in Greenville, Ala.

Quorum had combined proceeds of $45.9 million from these seven divestitures, much of which it used to help pay down secured debt.

Quorum President and CEO Thomas D. Miller said in a third quarter earnings release the company plans to continue selling off hospitals. 

"As we execute our strategy to divest underperforming hospitals, we have completed six transactions through the third quarter with another already completed in the fourth quarter," said Mr. Miller. "We expect more divestiture completions in 2018 as we remain dedicated to reducing our debt, managing our costs and increasing our profitability."

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