Community Health Systems Announces Plan to Spinoff New Public Company

Bass, Berry & Sims is representing Community Health Systems, Inc. (NYSE: CYH) in its plan to spinoff 38 hospitals and Quorum Health Resources, which provides hospital management and consulting services. The new company, Quorum Health Corporation (Quorum) will be headquartered in Middle Tennessee and operate independently. The businesses that comprise Quorum generated annual net revenue of approximately $2.1 billion and adjusted EBITDA of approximately $255 million in 2014. This transaction is expected to qualify as a tax-free distribution to Community Health Systems and its stockholders. The spinoff is expected to close in the first quarter of 2016.

Quorum includes 38 hospitals in 16 states, and is primarily located in cities or counties having populations of 50,000 or less. In 84 percent of the Quorum markets, the hospitals are the only acute care facilities.

Community Healthy Systems, Inc. will remain one of the largest publicly traded U.S. hospital companies with 160 affiliated hospitals in 22 states.

You Also May Be Interested In:

  • Representation of Tennessee Community Bank Holdings, Inc., the parent company for Community Bank & Trust located in Ashland City, Tennessee, in its definitive agreement to sell to Reliant Bancorp, Inc. (Nasdaq: RBNC) for $37 million in an approximately 50% stock and 50% cash transaction.

    We represented Tennessee Community Bank Holdings, Inc., the parent company for Community Bank & Trust located in Ashland City, Tennessee,...
    Client Type: Private Company
  • We represented Mid-America Apartments, L.P., the operating partnership of Mid-America Apartment Communities, Inc., in a public offering of $250,000,000 of...
    Client Type: Public Company
  • We represented BioScrip, Inc. in its merger with Option Care Enterprises, Inc. The newly combined company, Option Care Health, Inc., emerges as the largest independent home and alternate site infusion services provider in the United States. Option Care Health’s common stock will be listed on the Nasdaq Global Select Market under the ticker symbol BIOS.

     

    We represented BioScrip, Inc. in its merger with Option Care Enterprises, Inc. The newly combined company, Option Care Health, Inc.,...
    Client Type: Public Company