In the continuing effort of investor-owned firms to acquire rural and nonurban hospitals, Quorum Health Resources of Brentwood, Tenn., has created a division to acquire such facilities.
Quorum Health Resources, the hospital management subsidiary of Quorum Health Group of Brentwood, Tenn., has created an equities division to pursue nonurban hospitals with $15 million to $45 million in annual revenues. The new division began operations earlier this month.
"These smaller hospitals are going to be looking for partners when they have to recapitalize," said Clyde Eder, who was named senior vice president of Quorum Health Resources-Equities Division. "They want to keep a local community-driven delivery system."
The new division differs from Quorum Health Group, which has acquired about a dozen "middle market hospitals" that typically have more than $45 million in annual revenues. Quorum Health Group's facilities have 100 to 400 beds and are in markets of 50,000 to 400,000 people. Quorum Health Resources manages 256 hospitals.
"This is a natural outlook related to our managed facilities," Eder said. "They (Quorum-managed facilities) feel comfortable working with us."
Eder had been senior vice president of Quorum Health Resources' Eder division, based in Boulder, Colo.
The new division joins other recent firms going after rural and nonurban hospitals where managed care isn't as prevalent as in urban markets and the competition for acquisitions is less intense, industry observers say.
In the last year, several firms have begun rural hospital ventures. Principal Hospital Co. of Nashville, Tenn., was started in February by Martin Rash, who had been chief operating officer of Community Health Systems of Nashville. Also, former Healthtrust executives Dana McLendon and Robert Martin last year formed New American Healthcare Corp. of Nashville.