The leaders of Quorum Health have signed a letter of intent to explore the acquisition of a hospital in Mid-Missouri, a deal that would mark its first major move following its Chapter 11 reorganization.
Brentwood-based Quorum and SSM Health, which runs 23 hospitals and associated facilities in four states, have started talks about the sale of SSM Health St. Mary’s Hospital – Jefferson City and its affiliated medical group practices. St. Mary’s has 167 beds that are housed on a campus built in 2014 and, according to American Hospital Directory, has annual patient revenues of about $450 million. Quorum and SSM hope to strike a definitive deal in the second quarter of next year.
“Quorum Health is stronger today than ever before,” said President and COO Marty Smith. “With significant experience operating hospitals in non-urban communities similar to Jefferson City, Quorum brings the management expertise and operational strength needed to ensure this hospital remains strong for generations to come.”
Quorum was spun out of Community Health Systems in 2016 with 38 hospitals but has trimmed that portfolio to 22 as part of management’s efforts to lower the debt load with which the company began life. The company filed for protection from its creditors in early April and emerged from Chapter 11 in July with former Psychiatric Solutions and Acadia Healthcare CEO Joey Jacobs at the helm. However, Jacobs resigned two months later and former Capella Healthcare CEO Dan Slipkovich has been interim CEO since.