Quorum Health ends Q2 with flat sales, continued drop in net loss
- Quorum Health reported 2017 second quarter revenues of $530.1 million, just a hair ahead of the $529.7 million in revenues in the same period last year. The Brentwood, Tennessee-based health system attributed the flat results to recent divestitures and loss of revenues from the California Hospital Quality Assurance Fee program.
- Quorum's net loss continued to shrink — to $30.6 million from $245.1 million in the Q2 2016.
- The 34-hospital chain plans additional divestitures this year as it continues to work to bring restructure its portfolio.
“Our strategy to divest underperforming hospitals will improve our financial position,” Quorum CEO Thomas D. Miller said in an earnings release. “Our plan is to continue additional divestitures during the third quarter resulting in continued reductions in debt levels.”
Miller said the hospital chain’s financial picture should be helped by improvements in billing and collection processes, as well as a focus on quality and expanding service capabilities in its remaining markets.
Quorum, which spun off from Community Health Systems with 38 hospitals in rural and mid-sized markets in 16 states in 2015, has been focused on restructuring its portfolio, enhancing operations and increasing access to care. The company shed two hospitals during the fourth quarter of 2016, accounting for about $19 million of negative adjusted earnings last year.
This year has seen the sale of Cherokee Medical Center in Alabama and Trinity Hospital of Augusta in Georgia. Quorum also signed a definitive agreement with Williamsport, Pennsylvania-based UPMC Susquehanna for the sale of Sunbury Community Hospital and Lock Haven Hospital.
The transactions reflect a nationwide trend where health systems divest properties to improve their financial situation and other systems that are more financially secure secure snap them up to expand their footprint. At the end of 2016, Quorum announced plans to divest six hospitals valued at about $200 million, which would allow it to reduce secured debt.
- Business Wire Quorum Health Corporation Announces Second Quarter 2017 Operating Results
- Becker's Hospital CFO Report Quorum Health sees net loss narrow to $20.6M, plans more hospital sales