Community Health Will Spin Off 38 Hospitals In Rural And Suburban Communities
The new publicly traded hospital company, Quorum Health Corp, created by the spinoff, aims to tap into the expanded markets driven by greater Medicaid coverage.
Forbes:
New Hospital Company Poised To Tap ACA's Medicaid Expansion
As more states opt to expand Medicaid under the Affordable Care Act, a new investor-owned hospital company is poised to tap an emerging market of Americans in rural areas and smaller communities gaining health coverage. Community Health Systems (CYH) said Monday it will spin off to its shareholders a group of 38 smaller hospitals, primarily in rural and suburban markets with populations of “no more than 50,000.” In 84 percent of these markets, Community said the hospital is the “sole provider of acute hospital services.” Only 14 of these hospitals are located in states that have not expanded Medicaid coverage for poor Americans such as Alabama, Georgia, Texas, Tennessee and Wyoming. (Japsen, 8/4)
Reuters:
Community Health To Spin Off 38 Hospitals
Community Health Systems Inc, the No. 2 U.S. publicly traded hospital operator, said on Monday it plans to spin off 38 hospitals and a consulting business into a separate company so that it can focus on larger markets. Quorum Health Corp, the new publicly traded company, will include hospitals primarily in cities and counties with populations under 50,000, Community Health said. (Kelly, 8/3)
The Wall Street Journal:
Community Health Plans Spinoff, Reports Jump In Earnings
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. Separately, the hospital operator also announced plans to spin off a group of 38 hospitals and Quorum Health Resources LLC, its hospital management and consulting business. (Jaramillo, 8/3)
In other marketplace news, Aetna topped profit estimates while Tenet Healthcare reported Q2 losses -
Bloomberg:
Aetna Beats Profit Estimates On Government Insurance Growth
Aetna Inc., the No. 3 U.S. health insurer by enrollment, raised its full-year earnings forecast after reporting profit that topped analysts’ estimates as it added more members in government insurance programs. Aetna agreed last month to buy Humana Inc. to expand in Medicare, while Anthem Inc. announced a deal for Cigna Corp. The health-insurance industry is consolidating as it absorbs new customers and contends with added regulation from President Barack Obama’s Patient Protection and Affordable Care Act. (Tracer, 8/3)
The Wall Street Journal:
Tenet Healthcare Loss Widens
Tenet Healthcare Corp. said its second-quarter loss widened as the hospital operator was hit by $136 million in write-downs, restructuring charges, acquisition-related costs and other one-time items. However, excluding such items, per-share earnings beat expectations, while revenue topped Wall Street views. The company’s guidance for the current quarter also was above analysts’ predictions. (Stynes, 8/3)
