WILLIAMSON — On Aug., 4, Williamson Memorial Hospital’s parent company, Community Health Systems, announced that it is planning to spin off 38 hospitals into a new publicly traded hospital company.
Williamson Memorial Hospital has decided not to be a part of that spin-off and will remain an affiliate of Community Health Systems.
The hospital’s chief executive officer, Cindy Segar-Miller, said that nothing is changing at Williamson Memorial Hospital. Segal-Miller said their patients can continue to expect the same high-quality healthcare services and positive experience at Williamson Memorial Hospital. She also stated that their affiliation with Community Health Systems provides the hospital with resources and other advantages that benefit the patients and the community. She said Williamson Memorial Hospital is pleased that they will remain a part of this organization.
Community Health Systems plans to create a new publicly traded hospital company by spinning off to Community Health Systems’ stockholders a group of 38 hospitals and Quorum Health Resources, LLC, a leading hospital management and consulting business. The new company will be named Quorum Health Corporation to leverage the existing strength of the Quorum brand. The spin-off is intended to be tax-free to Community Health Systems and its stockholders and is expected to be completed in the first quarter of 2016.
Benefits of the transaction that Williamson Memorial Hospital will not be part of are:
• Creates New Healthcare Company Poised for Growth. With an attractive portfolio of high-quality community hospitals, streamlined management structure and independent access to capital markets, Quorum Health Corporation is expected to have an enhanced ability to drive growth by capitalizing on acquisition opportunities consistent with its portfolio, developing facility specific operating strategies aligned with its community needs and better leveraging its management and consulting capabilities.
• Community Health Systems to Sharpen Focus and Growth Profile. The spin-off will result in additional opportunities for profitable growth for Community Health Systems, as the Company will focus primarily on larger markets and on investing in strengthening its regional healthcare networks, while maintaining the benefits of scale from being one of the largest hospital companies in the country.
• Designed to Increase Stockholder Value. Community Health Systems stockholders will have the opportunity to realize the unique growth potential of two focused healthcare companies that will be better positioned to pursue their distinct business strategies.
• Tax-Free Transaction to Community Health Systems Stockholders. The distribution is intended to qualify as tax-free to Community Health Systems stockholders for U.S. federal income tax purposes.
Cindy Moore is a reporter for the Williamson Daily News. To contact Cindy by phone please call 304-235-4242 ext. 2278 or by email at [email protected].