Franklin, Tenn.-based Community Health Systems shared plans Monday to spin off 38 hospitals and Quorum Health Resources into a separate company, a move intended to strengthen the CHS' focus on larger markets.
Here are seven things to know about CHS' spinoff plan.
1. Creation of the new company, called Quorum Health Corp., is expected to be complete in the first quarter of 2016.
2. Headquartered in middle Tennessee, QHC will operate independently of CHS with its own board and management team.
3. QHC will include 38 hospitals across 16 states — a total of 3,635 licensed beds. These hospitals are primarily in cities or counties with populations of 50,000 or less. (A full listing of the hospitals slated to spin off is at the end of the article.)
4. The consulting component of the company, Quorum Health Resources, has relationships with 150 unaffiliated hospitals across the U.S.
5. In 2014, the businesses making up QHC generated unaudited annual net revenue of approximately $2.1 billion and adjusted EBITDA of approximately $255 million.
6. CHS said the spin-off will allow the company to focus primarily on larger markets and on investing in its regional healthcare networks. "Over the past 30 years, Community Health Systems has evolved from a collection of smaller hospitals into a much more complex and diversified portfolio of hospitals, outpatient services and healthcare systems across the country," said Wayne T. Smith, CHS chairman and CEO. "We know how important hospitals are to their communities and recognize that smaller facilities have distinct opportunities and different challenges than those in larger markets, where the majority of our assets are located."
7. These are the 38 hospitals that will make up QHC:
Cherokee Medical Center (Centre, Ala.)
DeKalb Regional Medical Center (Fort Payne, Ala.)
L.V. Stabler Memorial Hospital (Greenville, Ala.)
Forrest City (Ark.) Medical Center
Helena (Ark.) Regional Medical Center
Barstow (Calif.) Community Hospital
Watsonville (Calif.) Community Hospital
Trinity Hospital of Augusta (Ga.)
Fannin Regional Hospital (Blue Ridge, Ga.)
Clearview Regional Medical Center (Monroe, Ga.)
Barrow Regional Medical Center (Winder, Ga.)
Union County Hospital (Anna, Ill.)
Metro South Medical Center (Blue Island, Ill.)
Galesburg (Ill.) Cottage Hospital
Gateway Regional Medical Center (Granite City, Ill.)
Heartland Regional Medical Center (Marion, Ill.)
Crossroads Community Hospital (Mt. Vernon, Ill.)
Rest Bud (Ill.) Regional Hospital
Vista Medical Center (Waukegan, Ill.)
Vista Medical Center - West (Waukegan, Ill.)
Kentucky River Medical Center (Jackson, Ky.)
Three Rivers Medical Center (Louisa, Ky.)
Paul B. Hall Regional Medical Center (Paintsville, Ky.)
Mesa View Regional Hospital (Mesquite, Nev.)
Mimbres Memorial Hospital (Deming, N.M.)
Alta Vista Regional Hospital (Las Vegas)
Sandhills Regional Medical Center (Hamlet, N.C.)
Martin General Hospital (Williamston, N.C.)
Affinity Medical Center (Massillon, Ohio)
McKenzie-Willamette Medical Center (Springfield, Ore.)
Lock Haven (Pa.) Hospital
Sunbury (Pa.) Community Hospital
Henderson County Community Hospital (Lexington, Tenn.)
McKenzie (Tenn.) Regional Hospital
Big Bend Regional Medical Center (Alpine, Texas)
Scenic Mountain Medical Center (Big Spring, Texas)
Mountain West Medical Center (Tooele, Utah)
Evanston (Wyo.) Regional Hospital