Community Health Systems completes Quorum spin-off, nets $1.2 billion

The 56-bed Barrow Regional Medical Center in Winder, Georgia, is now part of Quorum.

Community Health Systems' long-awaited spin-off of its rural health business into Quorum Health Corp. wrapped up on Friday. Quorum is now an independent public company, trading under the QHC ticker symbol on the New York Stock Exchange.

QHC owns or leases 38 hospitals across 16 states that are primarily located in rural areas with populations of 50,000 or less, and according to the company. The network of rural hospitals hopes that its new structure will allow it to meet the challenges facing smaller hospitals.

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"QHC launches with a clear vision to focus on improving the health care in every community where services are provided," said Thomas D. Miller, president and chief executive officer of Quorum. "At a time when rural hospitals are under siege, we will use our resources to help make these hospitals essential in their communities."

CHC chief Wayne Smith commented in August said the deal would allow CHS and Quorum to focus on their individual missions based on market demands; Quorum will strive to meet the challenges facing rural facilities, while CHS can focus on its evolved portfolio of hospitals, outpatient services and healthcare systems nationwide.

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Quorum will also operate Quorum Health Resources, a hospital management advisory and consulting business.

Following the spin-off, CHS will still own, operate or lease 160 affiliated hospitals in 22 states amounting to roughly 27,000 hospital beds. They also netted roughly $1.2 billion from certain financing arrangements QHC entered into as part of the deal. The company said in a statement they would use the funds to cover debts and expenses incurred for the spin-off.

Twitter: @BethJSanborn