Quorum cuts full-year expectations, sees stock price cut in half

Quorum Health Corp., an operator of rural hospitals that recently spun off from Community Health Systems, saw its value cut in half on Wall Street Thursday after it posted a $245 million loss in the second quarter of 2016.

Investors were quick to unload Quorum stock after the company slashed its full-year revenue guidance to $175 to $200 million. It previously estimated revenue up to $275 million for the year.

Shares of Quorum stock, which started trading in May, fell To $5.23 apiece by Thursday close after trading around $10 a share one day earlier.

[Also: CHS rural hospitals spin-off Quorum Health loses $5 million in 1st quarter]

Quorum attributed its $245 million loss to nearly $220 million in charges tied to the spin-off. The company also recorded $5 million in goodwill allocations as it prepares to divest some of its facilities.

Revenue for the quarter was  $530 million, compared to $538 million in the same period last year.

CEO Thomas Miller in the announcement said the company is looking to add new services while unloading those that are underperforming. The company is already operating in a challenging sector of healthcare, as rural health facilities across the country are struggling amid higher expenses, increased regulation and lower reimbursements.

[Also: Community Health Systems completes Quorum spin-off, nets $1.2 billion]

"The strategic review of our hospitals and other operations will be ongoing to identify additional opportunities for cost efficiencies," Miller said in a statement. "We are committed to divesting underperforming assets and paying down our debt. We have already received letters of intent on certain facilities, and we currently anticipate that some sales should be completed in the fourth quarter."

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