Here are five things to know:
1. The transaction is expected to be completed by the end of the second quarter of 2025, pending agreement on final terms and receipt of regulatory approvals, according to a Dec. 11 news release from Bay Area Hospital.
2. The letter of intent, signed Dec. 11, explores a potential transaction in which a Quorum subsidiary “would enter into a purchase or lease transaction and have responsibility for the operations of the hospital,” a Quorum spokesperson said in a statement shared with Becker’s.
3. While terms are not finalized, Quorum has agreed to maintain core services for at least a decade and retain employees in good standing with their current title, seniority and pay. Quorum has also initially agreed to include local representation on the hospital’s governing board, according to the hospital release.
4. Between fiscal years 2022 and 2024, Bay Area Hospital reduced operating losses by $54 million and increased revenues by more than 27.6%. However, the hospital said in the release that “industry challenges require more than local efforts alone, and partnering with Quorum Health will offer the resources and support needed to continue providing and investing in quality care.”
5. “Quorum Health is focused on expanding access to healthcare in non-urban communities nationally,” the Quorum spokesperson said. “As part of our growth strategy, we continually evaluate strategic acquisitions, affiliations, and collaborations in markets that align with our mission and experience with community hospitals. We look forward to further discussions about expanding care for the residents of Coos Bay.”
