Quorum Health Corp., the 38-hospital spin-off of Franklin, Tenn.-based Community Health Systems, has signed a definitive agreement to sell Barrow Regional Medical Center in Winder, Ga., to Northeast Georgia Health System in Gainesville.
The transaction, which is subject to customary regulatory approvals, is expected to close Dec. 31.
The divestiture comes after Quorum ended the second quarter with an operating loss of $259.3 million — a significant change from the operating income of $27.5 million the company recorded in the second quarter of last year. In August, the company said it planned to divest underperforming assets to drive down debt.
Regarding the Barrow Regional Medical Center transaction, Quorum President and CEO Thomas D. Miller said, "We have executed our first definitive agreement related to our previously disclosed strategy. We expect to announce additional definitive agreements for divestitures, which when consummated, will further contribute to reducing debt and improving financial performance."
More articles on healthcare industry transactions:
Shuttered NC hospital draws 3 proposals
Salinas Valley, Montage eye multimillion-dollar partnership: 3 things to know
Steward secures $1.25B investment to fund expansion, pay off debt