Community Health Systems reported $1.2 billion in net proceeds from financing arrangements related to the spinoff of 38 of its hospitals into a separate, independent company called Quorum Health Corp.
CHS completed the spinoff Friday. Quorum Health Corp. will begin trading to the general public on Monday under the symbol QHC.
CHS said in a release that it would use the proceeds to pay off some of its debt, and for expenses incurred from the spinoff.
Even after the divestiture, the Franklin, Tenn.-based system remains one of the nation's three largest hospital companies, with 160 hospitals in 22 states.
The hospitals taken over by Quorum are predominantly small, rural and spread across 16 states.
In January, CHS said it was delaying the spinoff from its planned March closing target, pushing it off for a date sometime before the end of June. CHS officials said they were waiting for a more favorable market.
System officials said shedding the Quorum hospitals would allow the company to concentrate on larger markets with more growth opportunities, while giving the smaller hospitals a new management team dedicated to their needs.
