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Quorum Health signs definitive agreement to divest Alabama hospital

Brentwood, Tenn.-based Quorum Health has signed a definitive agreement to sell L.V. Stabler Memorial Hospital, a 72-bed facility in Greenville, Ala., to the Health Care Authority of the City of Greenville – L.V. Stabler Hospital, a public corporation.

The definitive agreement comes after Quorum signed a letter of intent to sell the hospital to the City of Greenville in July.

The transaction is expected to close in the fourth quarter of this year.

L.V. Stabler Memorial is one of several hospitals Quorum plans to divest. The company is focused on restructuring its portfolio to improve financial performance.

Quorum 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. The company divested Cherokee Medical Center in Centre, Ala., in March and Trinity Hospital of Augusta (Ga.) in June.

The company has several other deals in the works. Quorum inked definitive agreements earlier this year to sell four hospitals — Henderson County Community Hospital in Lexington, Tenn.; McKenzie (Tenn.) Regional HospitalSunbury (Pa.) Community Hospital; and Haven (Pa.) Hospital.

In a second quarter earnings call in August, Quorum CEO Thomas D. Miller said the company plans to continue selling off hospitals in the third quarter.

"Our strategy to divest underperforming hospitals will improve our financial position. Our plan is to complete additional divestitures during the third quarter resulting in continued reductions in debt levels," he said.

Quorum, the 34-hospital spinoff of Franklin, Tenn.-based Community Health Systems, saw its net loss narrow from $245.1 million in the second quarter of 2016 to $30.6 million in the same period of this year.

More articles on healthcare industry transactions:

10 recent hospital transactions and partnerships
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UPMC completes acquisition of PinnacleHealth

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