Community Health Systems moves forward with spin-off of Quorum Health, names CEO, CFO
Once the deal closes, Quorum would own or lease 38 hospitals and outpatient centers.
Community Health Systems moved one step closer to its planned spin-off of Quorum Health Corp. last week. The for-profit healthcare giant filed its Form 10 with the Securities and Exchange Commission for the transaction that would create Quorum as a separate for-profit company.
Once the deal closes, Quorum would own or lease 38 hospitals and outpatient centers previously owned by CHS. The new company would also absorb Quorum Health Resources, an existing CHS division that consults with hospitals not affiliated with CHS.
[Also: Community Health Systems spins off 38 rurals]
The deal is expected to close in the first quarter of 2016, and Quorum will trade on the New York Stock Exchange with the QHC ticker.
In addition, CHS said it has named Thomas Miller, current president of the CHS Division that runs its hospitals in Indiana, New Jersey, Ohio and Pennsylvania, as chief executive of the new company.
Also, CHS named Michael Culotta chief financial officer of the new Quorum company. He had been vice president of investor relations for CHS.
"Tom Miller is an accomplished healthcare executive who has contributed to the growth of our organization by strategically advancing the operational and financial performance of the hospitals in his Division. He is an entrepreneur at heart who has led the successful integration of some of our most significant hospital acquisitions," said CHS chief executive Wayne Smith in a statement.
"Mike Culotta is a highly regarded healthcare executive who brings a broad range of finance and investor relations experience to Quorum Health Corporation. He has a keen understanding of hospital operations and adeptly navigates the complexities of healthcare finance," he said.
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Community Health Systems is one of the largest for-profit healthcare providers in the United States, running nearly 200 hospitals.
Once the spin-off closes, Quorum will run 38 rural facilities and manage more than 3,500 beds. According to CHS, those facilities pulled in a combined $2.1 million in revenue in 2014 and earned more than $265 million.
It will be based in Nashville.
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