“These results include operating synergies from the integration of the HMA hospitals, the benefit of numerous strategic initiatives, and the incremental opportunities created by the Affordable Care Act”, Chief Executive Wayne T. Smith said in a release.
The large publicly traded parent of McKenzie-Willamette hospital in Springfield plans to spin off a group of hospitals and a hospital management consultant business to form a separate company.
Community Health Systems Inc. raised its earnings guidance for the year as its second-quarter profit more than doubled thanks to its acquisition of Health Management Associates Inc.
Campbell said in the statement that the ownership shift will help orient the Springfield hospital for the future. During the same quarter in the previous year, the company posted $0.27 earnings per share.
Campbell emphasized that much will remain the same with the new parent company.
The company will be called Quorum Health Corporation and be headquartered in Middle Tennessee.
Metro Health abruptly announced it will not close on the planned affiliation with a national health care giant, Tennessee-based Community Health System. It will include a diversified portfolio with an aggregate of 3,635 licensed beds across 16 states. “We view this transaction as the best next step”.
Most of those hospitals are in the South and in Illinois.
Shareholders will receive Quorum Health Corp. shares based on the number of shares that they hold in Community Health Systems – similar to how a cash dividend amount is determined, said Galin, the Community Health Systems spokeswoman.
“Taking these hospitals out will eventually lead to higher margins at Community”, she said.
The new partnership would have made Metro Health the first investor-owned hospital in West Michigan.
In 2014, the businesses that will make up Quorum Health Corporation generated unaudited annual net revenue of approximately $2.1 billion and adjusted Earnings Before Interest, Taxes, Depreciation and Amortization of approximately $255 million. 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. Leerink Swann restated a “buy” rating on shares of Community Health Systems in a research report on Tuesday, June 30th. The firm’s quarterly revenue was up 17.6% compared to the same quarter past year. It gives a range of other outpatient services along with hospital healthcare services to patients in the communities in which the Company is found.