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Suit says Quorum hid hospital's losses

The Tennessean, December 11, 2009

A Mississippi hospital has sued Quorum Health Resources, accusing the Brentwood, TN-based management company of violating its contract by providing allegedly misleading information about the medical center's finances to its board. Natchez Regional Medical Center said Quorum hid huge losses at the medical center and touted a phantom financial turnaround at the facility so the board would renew its management contract, the lawsuit contends. The suit was filed this week in a Mississippi federal court. It seeks damages of at least $46 million, plus unspecified punitive damages. Susan Hassell, a spokeswoman for Quorum, said the company was reviewing the lawsuit and doesn't comment on pending litigation. Quorum is owned by Community Health Systems, the Franklin, TN-based hospital chain.