L.V. Stabler spun to new company
Published 11:02 am Thursday, August 6, 2015
Community Health Systems, the parent company of L.V. Stabler Memorial Hospital, announced Monday that it plans to spin off a group of hospitals to form a separate company.
Among the 38 hospitals that will become a part of Quorum Health Corporation is Greenville’s L.V. Stabler Memorial Hospital. The new company will also include Quorum Health Resources, which provides hospital management and consulting services to 150 non-affiliated hospitals across the United States, most of which are located in similar markets as Quorum Health Corporation’s sole provider hospitals.
The transaction is expected to be completed in the first quarter of 2016.
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Of the hospitals making up Quorum Health Corporation most are in cities or counties with populations of 50,000 or less, Community Health Systems said.
In 84 percent of these markets, the hospital is the sole provider of acute care hospital services.
In 2014, The Joint Commission recognized 74 percent of the hospitals that will become part of Quorum Health Corporation as Top Performers in Key Quality Measures.
Last year, the businesses that will make up Quorum Health Corporation generated unaudited net revenue of $2.1 billion.
“This significant transaction will realign our portfolio into two strong and focused companies that can respond to market demands with greater agility and that are better positioned to take advantage of growth opportunities, while creating additional value for our stockholders,” said Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc.
L.V. Stabler Memorial Hospital CEO Donny Rentfro said he believes the move to the new company is a positive one, and that he doesn’t expect there to be any changes to the administration or staff at the hospital.
“We want members of our community to know that they can continue to expect the same high-quality healthcare services and experience they count on now at L. V. Stabler Memorial Hospital,” said Rentfro. “Care will be provided by the same physicians, nurses and employees that our patients already know and trust. Our name will remain the same and we will continue to participate in the same insurance plans that we accept today. We believe affiliation with a company that is fully focused on the distinct opportunities and challenges of hospitals likes ours will be beneficial for our patients and will position our hospital to successfully serve our community for years to come.”
Quorum Health Corporation will be headquartered in Tennessee and will operate independently with its own board of directors and management team. It will oversee 38 hospitals with a total of 3,635 licensed beds in 16 states.