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Quorum Reports $200 Million Loss for 2018

Analysis  |  By Steven Porter  
   March 12, 2019

The hospital operator quarreled with Community Health Systems and had its CEO retire last year.

Quorum Health Corporation, based in Brentwood, Tennessee, announced fourth-quarter and year-end financial results Tuesday, including a $200.2 million loss for the 2018 calendar year.

The loss is 75% bigger than the $114.2 million loss Quorum reported for the 2017 calendar year. Net operating revenues, meanwhile, were $1.88 billion for 2018, down about 9.3% from the $2.07 billion Quorum reported for 2017.

The hospital operator, which has struggled since it spun off from Community Health Systems in 2016, had quarreled with CHS over transition service agreements and dealt with the retirement of CEO Thomas D. Miller last year.

Despite the challenges, Quorum President and CEO Robert Fish said Tuesday's fourth-quarter results "represent a strong finish to 2018."

Net operating revenues were $458.6 million for the three months ended December 31, a 10.9% decrease compared to the $515.1 million reported for the same period a year prior. The company's fourth-quarter net loss was $20.7 million, an improvement of about 22.7% over the $26.8 million loss Quorum reported in the fourth quarter of 2017.

"Over the course of 2018, we significantly improved our EBITDA margins through targeted efficiency initiatives, and divested three hospitals, which brought us closer to our refinancing goal," Fish said in a statement to investors and filed with the Securities & Exchange Commission.

"I look forward to building on the success we had in 2018 and carrying that momentum forward through 2019," he added.

Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.

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