CHS rural hospitals spin-off Quorum Health loses $5 million in 1st quarter
Company sees $549.6 million in net operating revenue as spin-off costs played a role in the loss.
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Following the completion of its spin-off from Community Health Systems, Quorum Health Corp. on Friday reported a net loss of $5 million in the first quarter of 2016, which ended March 31, the company announced this week.
The company brought in $549.6 million in net operating revenue, a 0.4 percent increase over the same period in 2015. The $5 million loss was contrasts with $6.2 million in profit the unit posted for the same period last year, when it was still a division of CHS. The results for the three months ended March 31, 2016 include $3.7 million of transaction costs related to the company's spin-off from CHS. Excluding these costs, income from operations was $24.8 million.
[Also: Community Health Systems completes Quorum spin-off, nets $1.2 billion]
As of March 31, 2016, the company owned or leased 38 hospitals, including 3,577 licensed beds in 16 states. Their main business focus is providing general hospital healthcare, but also provides additional outpatient services at urgent care centers, imaging centers and surgery centers. The company also has under its umbrella Quorum Health Resources, a management advisory and consulting group.
Despite the losses, company officials say they hold strong market positions in the communities they serve. Quorum owns or leases 38 hospitals across 16 states that are primarily located in rural areas with populations of 50,000 or less, including 32 areas where they are the sole provider of acute care hospital services.
Twitter: @BethJSanborn
