Brentwood-based Quorum Health plans to further reduce its portfolio by up to nine hospitals this year.
Since the company’s spin-off from Franklin-based Community Health Systems in 2016, which the company originally pegged as an effort to focus on health care delivery in its rural hospitals, Quorum has sold 10 of its 38 hospitals — predominantly to pay off debt — and closed one other.
Quorum CEO Bob Fish told investors listening in to the company’s fourth-quarter earnings call his team has pinpointed hospitals to be sold and is actively marketing them on a singular and group basis.
“We continue to see active interest in the assets being marketed,” Fish said. “Once we’re able to complete our currently planned divestitures, we expect the profile of our business to consist of 18 to 20 premier rural and non-urban hospitals generating $1.2 million to $1.4 billion in revenue with enterprise adjusted EBITDA margins in the mid-teens.”
Quorum booked $86.5 million in net proceeds from the 10 hospitals it has sold thus far. The company reported a net 2018 loss of $200 million on total operating revenue of $1.9 billion. Overall revenues fell around nine percent last year.
Quorum’s leaders are forecasting that 2019 revenue will remain fairly flat at about $1.85 billion and that adjusted EBITDA (adjusted for divestitures) will be about $160 million to $180 million.
Shares for Quorum Health (Ticker: QHC) have dropped nearly 45 percent from the start of the year and were changing hands Wednesday at about $1.85.