Nearly a year after emerging from bankruptcy, Quorum Health announced it had sold its consulting division to a private equity firm.
The Brentwood, Tennessee-based rural and medium-sized hospital operator has sold a majority stake in its consulting and outsourcing services subsidiary, QHR Health, to Grant Avenue Capital, a privately held capital company. in health in an agreement that entered into force on 28 May.
Dan Slipkovich, CEO of Quorum, said in a statement that the sale will allow the company to focus on its primary goal of building the hospital system, both by capturing market share in existing locations and by making strategic acquisitions.
“This transaction allows QHC to refocus on our core operations,” he said. “The capital generated by the transaction will allow us to accelerate certain high-priority projects and capital investments to expand health services in our existing markets and invest in new market opportunities.”
Quorum announced in July 2020 had met a $ 500 million debt reduction target outlined in its restructuring agreement after filing for bankruptcy three months earlier. The company also said it has refreshed its board and named Joey Jacobs its new interim CEO. Slipkovich replaced Jacobs only two months later.
The parties refused to share the terms of the agreement, including the price of the transaction. Grant Avenue Capital said this marks its seventh corporate sculpture since its launch in 2019. Grant Avenue is typically aimed at companies that generate $ 5 million to $ 25 million in earnings before interest, taxes, amortization and amortization. In addition to the majority stake in Grant Avenue, Nashville Capital Network and Brentwood Capital Partners have acquired stakes in QHR Health, also known as Quorum Health Resources.
“We believe in the importance of QHR Health’s vision to strengthen the health of the independent community,” said Buddy Gumina, founder and managing partner of Grant Avenue Capital, in a statement. “We look forward to collaborating with the QHR Health management team and expanding the breadth of the platform’s services to support its clients’ mission of providing access to local health excellence in the communities they serve.”
QHR Health will continue to operate from its Brentwood headquarters, and will continue to provide Quorum Health with supply chain support and other consulting services.
QHR Health, which was founded in 1977, provides management consulting services, revenue cycle management, supply chain optimization, outsourced IT services and strategic consulting, according to a press release.
Its former parent company, Quorum Health has a portfolio of 22 affiliated hospitals in 13 states with an aggregate of 1,817 licensed beds.