In a statement from Doyle Hayes, the chairman of Metro Health Board of Directors, they have worked on the joint venture with Community Health Systems, Inc.in Tennessee for two years, but they are closing their planned affiliation.
Community Health Systems has set its FY15 guidance at $3.40-4.05 EPS.Individual that are interested in registering for the company’s earnings conference call can do so using this link.
The hospitals that will comprise Quorum Health Corporation have market positions and are primarily located in cities or counties having populations of 50,000 or less.
The spinoff will be tax-free for Community shareholders and is expected to be completed in the first quarter of 2016.
“These results include operating synergies from the integration of the HMA hospitals, the benefit of numerous strategic initiatives, and the incremental opportunities created by the Affordable Care Act”, Chief Executive Wayne T. Smith said in a release. During the same quarter last year, the company posted $0.37 earnings per share. “We view this transaction as the best next step in our continuous effort to return value to our stockholders”.
Most of those hospitals are in the South and in Illinois. Community Health has a Composite Rating of 91 out of a possible 99.
Community Health Systems has evolved over the past three decades from a collection of smaller hospitals into a diversified portfolio of hospitals, outpatient services, and healthcare systems across the country, the company said.
It has been in the works for nearly two years now, but late Monday afternoon, 24 Hour News 8 confirmed Metro Health is not merging with a for-profit hospital. “At the same time, the transaction will facilitate a sharper focus on the hospitals that are retained by Community Health Systems, especially in high-opportunity markets and in areas where we are building regional healthcare networks”. Leerink Swann restated a “buy” rating on shares of Community Health Systems in a research report on Tuesday, June 30th. Analysts are predicting that Community Health Systems, Inc. The company had revenue of $4.88 billion for the quarter, compared to the consensus estimate of $5.03 billion. Other highly rated members of the group include Universal Health Services (NYSE:UHS), which has a Composite Rating of 98, and Tenet Healthcare (NYSE:THC), which has a Composite Rating of 96.
McKenzie-Willamette’s net patient revenues were $149.76 million in 2014, up 12 percent from the previous year, according to its latest state financial filing. Adjusted EBITDA in the quarter increased 9.9 percent to $769 million.