While CHS claims Quorum owes it $9 million, Quorum contends that CHS issued the bills improperly.
“We intend to vigorously contest the charges as not payable to CHS under the transition services agreements and have made a counterclaim for termination of the agreements as well as substantial damages we believe we have suffered as a result of the transition services agreements and other actions taken by CHS in connection with the spin-off,” Quorum said in the filing.
The dispute is pending before the American Arbitration Association, with proceedings scheduled for June and a decision expected in August.
If CHS gets its way, the agreements will be terminated effective September 30 or sooner, if both parties agree to an earlier date.
Quorum, CHS, and R2 Investments did not respond Tuesday to requests for comment.
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.