Quorum sees net loss narrow to $27M, targets up to $253M in hospital divestitures

Brentwood, Tenn.-based Quorum Health ended the fourth quarter of 2017 with a net loss, but the company hopes to continue to improve its financial position by restructuring its portfolio.

The 29-hospital system, which is a spinoff of Franklin, Tenn.-based Community Health Systems, said revenues were nearly flat year over year at $515 million, according to preliminary financial documents released March 7.

The company said it made progress in collecting outstanding payments from California and Illinois in the fourth quarter of 2017. Quorum received $51 million of the roughly $65 million owed to the company for care provided to Medicaid and state employee patients in Illinois. The company also received $31 million of $50 million in outstanding payments from the California Hospital Quality Assurance Fee program.

Quorum ended the fourth quarter of 2017 with a net loss of $27 million, compared to a net loss of $91 million in the same period of the year prior.

Looking at full-year results, Quorum recorded a net loss of $114.2 million on revenues of $2 billion in 2017. In 2016, the company recorded a net loss of $345.2 million on revenues of $2.1 billion. 

Quorum is focused on restructuring its portfolio to improve financial performance. The company began a divestiture spree in 2016 and is currently targeting $203 million to $253 million in asset sales over the next one to two years, including hospitals and other facilities that are already under definitive purchase agreements.

As of March 1, Quorum had received $47 million in net proceeds from the divestiture of eight hospitals. Since Dec. 31, 2017, Quorum has closed a 156-bed hospital in Ohio, entered a definitive agreement to sell a 77-bed hospital in Georgia, and completed the sale of a 70-bed hospital in Illinois.

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