The Quorum Health Sale

A PESP report examines GoldenTree Asset Management’s proposed $957 million sale of Quorum Health to a newly formed nonprofit, raising concerns that the company’s hospitals could face the same financial pressures seen at Steward Health Care and Prospect Medical Holdings following private equity exits.

The transaction could leave Quorum’s 11 hospitals with 30% more long-term debt and $1.7 billion in total liabilities, while GoldenTree and other lenders could receive a significant payout. The proposed sale remains under regulatory review in New Mexico.

The report examines the proposed transaction, its parallels to previous private equity hospital exits, and the potential consequences for patients, workers, and communities.

Eleven hospitals across nine states
Quorum has shrunk from 24 hospitals when it filed for bankruptcy in 2020 to 11 today. The company currently owns or operates:

• Arkansas: Forrest City Medical Center (Forrest City)
• California: Barstow Community Hospital (Barstow)
• Kentucky: Kentucky River Medical Center (Jackson); Three Rivers Medical Center (Louisa)
• New Mexico: Mimbres Valley Medical Center (Deming)
• Nevada: Mesa View Regional Hospital (Mesquite)
• Oregon: McKenzie-Willamette Medical Center (Springfield)
• Texas: Big Bend Regional Medical Center (Alpine); Odessa Regional Medical Center (Odessa)
• Utah: Mountain West Medical Center (Tooele)
• Wyoming: Evanston Regional Hospital (Evanston)