Two local hospitals to be under new parent corporation

Community Health Systems Inc. plans to create a new publicly traded hospital company by spinning off a group of 38 hospitals and a consulting business — Quorum Health Resources, LLC.

The new company will be named Quorum Health Corporation and will include the following metro-east hospitals: Gateway Regional Medical Center in Granite City, Red Bud Regional Hospital, and Crossroads Community Hospital in Mt. Vernon.

Shane Watson, chief executive officer of Red Bud Regional, issued the following statement: “We want members of our community to know that they can continue to expect the same high-quality healthcare services and experience they count on now at Red Bud Regional Hospital. Care will be provided by the same physicians, nurses and employees that our patients already know and trust. Our name will remain the same, and we will continue to participate in the same insurance plans that we accept today.

Watson further stated, “We believe affiliation with a company that is fully focused on the distinct opportunities and challenges of hospitals likes ours will be beneficial for our patients and will position our hospital to successfully serve our community for years to come.”

Ed Cunningham, chief executive officer of Gateway Regional Medical Center, issued the same statement as Watson.

Quorum Health Corporation will be headquartered in Tennessee and will operate independently with its own board of directors and management team. It will include 38 hospitals with an aggregate of 3,635 licensed beds across 16 states. The hospitals that will comprise Quorum Health Corporation are primarily located in cities or counties having populations of 50,000 or less, according to Community Health.

The businesses that will comprise Quorum Health Corporation generated annual net revenue of approximately $2.1 billion in 2014. The spin-off is expected to be completed in the first quarter of 2016 and is a tax-free transaction to Community Health Systems stockholders.

This story was originally published August 6, 2015 at 1:44 PM with the headline "Two local hospitals to be under new parent corporation."