Quorum Health Corp., the 38-hospital system spun out of Community Health Systems last month, posted a $5 million net loss in its first quarter on revenue of $549.6 million that was flat compared with the year-ago period, the company said in its earnings release Wednesday.
Quorum's income from operations was $21.1 million compared with income from operations of $34.3 million in the same period in 2015.
The results for the three months ended March 31 include $3.7 million of transaction costs related to Quorum's spinoff from CHS. Excluding those costs, income from operations was $24.8 million. Quorum posted net income in its 2015 first quarter of $6.2 million.
Quorum CEO Thomas Miller said he was happy with Quorum's financial performance out of the gate.
“We are very confident and optimistic about the long-term future of this new company,” Miller said in the release.
Most of Quorum's hospitals are in rural areas across 16 states. “We have a great opportunity to create a physician-driven company, whose hospitals are essential to their communities,” Miller said.
CHS, which has 160 hospitals after the spinoff, received net proceeds of about $1.2 billion for Quorum. The money is being used to retire debt.