Community Health Systems, Inc. (NYSE: CYH) (“CHS”) today
announced that it has completed the previously announced spin-off
of Quorum Health Corporation (“QHC”). As a result of the spin-off,
QHC is now an independent public company and listed on the New York
Stock Exchange (the “NYSE”) under the ticker symbol “QHC.”
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Commenting on the spin-off, Wayne T. Smith, chairman and chief
executive officer of Community Health Systems, Inc., said, “Today’s
successful spin-off creates two healthcare companies that are
positioned to create shareholder value and to pursue unique
pathways for future success. At Community Health Systems, our
smaller, refined portfolio creates immediate efficiencies and
sharpens our focus on key, competitive markets where we can seek to
capitalize on our greatest opportunities for sustainable growth. We
are excited about QHC’s potential and extend our best wishes for
success to QHC’s management team and board of directors.”
Commenting on the launch of QHC, Thomas D. Miller, president and
chief executive officer of Quorum Health Corporation, said, “QHC
launches with a clear vision to focus on improving the health care
in every community where services are provided. At a time when
rural hospitals are under siege, we will use our resources to help
make these hospitals essential in their communities. We look
forward with determination and enthusiasm to the opportunity
ahead.”
As a result of the spin-off, QHC owns or leases a portfolio of
38 hospitals with an aggregate of 3,582 licensed beds. The
hospitals are geographically diversified across 16 states,
primarily located in cities or counties having populations of
50,000 or less. QHC also operates Quorum Health Resources, LLC, a
leading hospital management advisory and consulting services
business.
CHS remains one of the largest publicly traded hospital
companies in the United States and a leading operator of general
acute care hospitals in communities across the country. Immediately
following the completion of the spin-off, CHS’ stockholders own all
of the outstanding shares of common stock of QHC.
Under the terms of the spin-off, CHS stockholders who held CHS
common stock as of April 22, 2016, the record date, received a
distribution of one share of QHC common stock for every four shares
of CHS common stock, plus cash in lieu of any fractional
shares.
Since April 20, 2016, QHC shares have traded on a “when-issued”
basis on the NYSE under the symbol “QHC WI.” “When-issued” trading
of QHC shares ended at the close of the market on April 29, 2016.
“Regular-way” trading in QHC’s common stock is expected to begin
under the symbol “QHC” on May 2, 2016, the first trading day
following the completion of the spin-off.
In connection with the spin-off, CHS received approximately $1.2
billion of the net proceeds of certain financing arrangements
entered into by QHC as part of the spinoff. CHS intends principally
to use these proceeds to repay secured indebtedness, as well as
certain expenses incurred in connection with the spin-off and such
debt repayment transactions.
About Community Health Systems, Inc.
CHS is one of the largest publicly-traded hospital companies in
the United States and a leading operator of general acute care
hospitals in communities across the country. After giving effect to
the spin-off noted above, through its subsidiaries, CHS currently
owns, leases or operates 160 affiliated hospitals in 22 states with
an aggregate of nearly 27,000 licensed beds.
CHS’ headquarters are located in Franklin, Tennessee, a suburb
south of Nashville. Shares in CHS are traded on the NYSE under the
symbol “CYH.” More information about CHS can be found on its
website at www.chs.net.
About Quorum Health Corporation
QHC is an operator and manager of general acute care hospitals
and outpatient services in the United States. QHC owns or leases a
diversified portfolio of 38 affiliated hospitals with an aggregate
of approximately 3,582 licensed beds. QHC also operates Quorum
Health Resources, LLC, a leading hospital management advisory and
consulting business.
Forward-Looking Statements
Certain statements contained in this communication may
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
include, but are not limited to, statements regarding the expected
timing of regular-way trading in QHC’s common stock, the benefits
of the spin-off transaction to either CHS or QHC, the market
position of the business spun off, CHS’ intended use of the net
proceeds distributed from QHC, and transactions and other events
and other statements that are not historical facts. Such statements
are based on the views and assumptions of the management of CHS and
QHC and are subject to significant risks and uncertainties. There
can be no assurance that the future events will occur as
anticipated, if at all, or that actual results will be as expected.
Actual future events or results may differ materially from these
statements. Such differences may result from a number of factors,
including but not limited to: possible negative effects on CHS’ or
QHC’s business operations, assets or financial results as a result
of the spin-off; a failure to obtain necessary regulatory
approvals; a deterioration in the business or prospects of CHS or
QHC; adverse developments in CHS’ or QHC’s markets; adverse
developments in the U.S. or global capital markets, credit markets
or economies generally; risks associated with CHS’ and QHC’s
indebtedness, leverage and debt service obligations; CHS’ and QHC’s
ability to successfully make acquisitions or complete divestitures;
changes to CHS’ intended use of the net proceeds distributed from
QHC; CHS’ and QHC’s ability to successfully integrate any acquired
hospitals, or to recognize expected synergies from acquisitions or
improved cash flows from divestitures; and changes in regulatory,
social and political conditions. Additional risks and factors that
may affect results are set forth in CHS’ and QHC’s filings with the
Securities and Exchange Commission, including CHS’ most recent
Annual Report on Form 10-K, current reports on Form 8-K and
quarterly reports on Form 10-Q and QHC’s Registration Statement on
Form 10, as amended. The forward-looking statements speak only as
of the date of this communication. Neither CHS nor QHC undertakes
any obligation to update these statements.
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Community Health Systems, Inc.Investors:W. Larry Cash,
615-465-7000President of Financial Services and Chief Financial
OfficerorMedia:Tomi Galin, 615-628-6607Senior Vice President,
Corporate Communications, Marketing and Public AffairsorQuorum
Health CorporationInvestors:Michael J. Culotta,
615-221-1400Executive Vice President and Chief Financial
OfficerorMedia:Lisa Anderson, 615-221-3793Vice President, Marketing
and Communications
Community Health Systems (NYSE:CYH)
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