Brentwood, Tenn.-based Quorum Health Corp. is in negotiations to divest its underperforming facilities, said President and CEO Thomas D. Miller during a third-quarter earnings call.
Quorum, the 38-hospital spin-off of Franklin, Tenn.-based Community Health Systems, saw operating revenues increase 0.1 percent year over year to $543.9 million in the third quarter of 2016, up from $543.1 million in the same period of the year prior.
After accounting for an increase in expenses, Quorum recorded a net loss of $7 million in the third quarter, compared to a net loss of $5.7 million in the same period of 2015.
During the earnings call Thursday, Mr. Miller said Quorum is focused on restructuring its portfolio. The company has inked agreements to sell two hospitals — Sandhills Regional Medical Center in Hamlet, N.C., and Barrow Regional Medical Center in Winder, Ga. — and expects to receive about $25 million for those facilities. Those funds will be used to drive down the company's debt.
In addition to the two hospitals under contract, Quorum plans to sell six more unspecified hospitals, according to Mr. Miller. He said the divestitures are a "top priority."
More articles on healthcare finance:
This week's 5 must-reads for hospital CFOs
BlackRock ups stake in CHS to become company's second-largest shareholder
UPMC operating margin shrinks in Q1