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Quorum Health Considers KKR Recapitalization Letter

Analysis  |  By Jack O'Brien  
   December 02, 2019

The New York-based private equity firm took a 5.6% stake in the rural for-profit provider in 2017.

Quorum Health Corp. publicly acknowledged a non-binding proposal letter from KKR & Co., a New York-based private equity firm, according to a Monday night press release.

The Brentwood, Tennessee–based hospital operator said the letter relates to a "potential recapitalization transaction," including the "buy-out of the public shares held by minority holders at a price of $1.00 per share."

Quorum said it will "carefully consider" KKR's letter as part of the company's "ongoing engagement with its debt and equity holders."

KKR's letter comes about one month after Quorum's Q3 earnings report where the provider posted a net loss of nearly $76 million and saw its net revenues decline by $41 million year-over-year.

In 2017, KKR took a 5.6% stake in Quorum for $11.3 million.

Editor's note: Quorum's stock finished the Tuesday trading session up more than 64%.

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.


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