CHS spin-off Quorum Health loses $22 million, divests 2 hospitals
Company took a $3.5 million hit resulting from two hospitals the company divested in December.
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Quorum Health Corp., which was spun off from struggling hospital operator Community Health Systems last year, posted a net loss of $22 million in the first quarter, the company announced this week.
For the three months ending March 31, Quorum's net operating revenues totaled $527.6 million, down from $549.6 million during the same period last year, a 4 percent decrease. According to Quorum, part of that was a $3.5 million hit resulting from two hospitals the company divested in December. An additional $8.3 million was related to the California Hospital Quality Assurance Fee program, while $3.3 million was due to impairment charges related to hospitals reclassified as held for sale in 2017.
As of March 31, 2017, Quorum owned or leased 35 hospitals in rural and mid-sized markets located across 16 states, totaling 3,399 beds. Its 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.
The company said it will continue to focus on divesting "non-performing assets." It expects net operating revenues by the end of this year to total between $2.05 billion and $2.1 billion.
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