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Quorum Health Emerges from Bankruptcy, Names New CEO

Analysis  |  By Jack O'Brien  
   July 08, 2020

CEO Robert Fish resigned and Joey Jacobs, former CEO of Acadia Healthcare, was appointed to replace him.

Quorum Health emerged from bankruptcy Tuesday evening, according to a filing with the Securities and Exchange Commission.

On April 7, the Brentwood, Tennessee–based hospital operator filed for Chapter 11 bankruptcy, entering into a restructuring support agreement (RSA) on a "pre-packaged plan" to reduce its debt.

On June 30, Quorum announced that it had received court approval for its prepackaged recapitalization plan and planned to emerge from bankruptcy in early July. 

As part of the recapitalization plan, Quorum Health became a wholly owned subsidiary of Quincy Health, L.L.C, a newly formed Delaware company.

The filing stated that Quorum's shares of common stock and any shares of "restricted stock, restricted stock units, or any other right to receive equity" in the company prior to Tuesday were canceled.

Additionally, the company's board of directors resigned effective Tuesday, including Robert Fish, who resigned as president and CEO. 

Alfred Lumsdaine, CFO of Quorum, was appointed president of the company and Joey Jacobs, former CEO of Acadia Healthcare, was appointed CEO of the company.

"This company has successfully turned a crucially important corner and I’m excited to join Quorum Health as we begin this new chapter," Jacobs said in a statement. "Completing this process allows our hospitals and subsidiaries to continue providing quality care and developing new ways to deliver much-needed health services to the communities we serve, now and in the future. We appreciate the Court’s diligence and are grateful for the wisdom of our bondholders in recognizing the strength of our operations and taking the difficult but necessary steps to provide a platform for success. I look forward to working with the Board and management team, as well as the dedicated employees and physicians, to shape a bright future."

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

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