Brentwood, Tenn.-based Quorum Health has withdrawn from a proposed deal to operate the financially struggling Bay Area Hospital in Coos Bay, Ore.
The organizations announced Aug. 8 that Quroum, a for-profit hospital management company, terminated its nonbinding letter of intent and concluded the due diligence process with the hospital.
“The commitment of the board to preserving access to high-quality healthcare on the South Coast remains unchanged,” Simon Alonzo, board chair of the Bay Area Hospital District Board of Directors, said in a news release. “Bay Area Hospital is essential to the health and well-being of our community, and we are focused on evaluating all possible options to ensure its long-term stability.”
Chris Harrison, CEO of Quorum Health said in the release, “I want to thank the Bay Area Hospital team and community leaders for their thoughtful engagement and openness throughout the discussions and due diligence process. We felt that it would be appropriate for both sides to step back from the LOI process to allow time for Bay Area to focus on its operations to strengthen access to healthcare in the region. As we conclude our discussions, we walk away with a deep respect for the Coos Bay community’s unwavering commitment to its hospital.”
The news comes after the organizations announced the letter of intent in December 2024. The proposed deal prompted opposition from the union representing hospital employees as well as a number of community members, who voiced concerns about out-of-state ownership, according to The Lund Report. Amid the opposition, the hospital launched its own information campaign, “Here for Good.”
News of Quorum’s withdrawal from the proposed deal also follows leadership changes at the hospital. On Aug. 5, the hospital announced Kelly Morgan as interim president and CEO. Mr. Morgan replaces Brian Moore, who resigned as CEO on July 16.
Mr. Morgan was unavailable for comment to The Lund Report Aug. 8. However, in a follow-up statement shared with the media outlet, a hospital spokesperson said hospital executives have “escalated our turnaround plan” and are working with local partners, the state, and community leaders to “create a local solution for improving the hospital’s financial performance.”
According to The Lund Report, the hospital lost $13.8 million last year on revenue of $250 million.
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