Quorum Health Group last week registered an initial public stock offering of 6.25 million common shares with the Securities and Exchange Commission.
The stock is expected to enter the market at $14 to $16 a share, company executives said.
Quorum, based in Brentwood, Tenn., said it plans to use the estimated proceeds of $86.6 million to repay debt incurred from its hospital acquisitions.
That will increase the amount available under Quorum's $300 million line of credit for acquisitions and other purposes. The underwriters are Goldman Sachs & Co., Dean Witter Reynolds and Furman Selz.
Quorum got into the hospital ownership business in 1990 when it bought its first hospital. Quorum, which now owns 13 hospitals and manages 258, was formed in 1989 when executives of Hospital Corporation of America joined forces with New York-based Welsh, Carson Anderson & Stowe to buy the hospital contract management business of HCA.