Quorum Health has sold off its advisory and outsourced services subsidiary Quorum Health Resources (QHR Health), the company announced June 1.
Healthcare private equity firm Grant Avenue Capital has claimed a majority stake in the company, with Nashville Capital Network and Brentwood Capital Advisors also announced as new investors in the independent portfolio company.
The deal went into effect May 28 and will see QHR Health continue to operate out of its Brentwood, Tennessee, headquarters. Despite the new ownership, it will continue to provide supply chain support and consulting services to its old parent company.
The companies did not disclose other terms of the deal.
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"This is an exciting time for QHR Health, our clients and the markets we serve," Dwayne Gunter, president and CEO of the former subsidiary, said in a statement. "Our partnership with Grant Avenue fuels the ability to accelerate development of our technology-enabled shared-services, expand our human capital capabilities, and provide the solutions our clients require to remain independent, financially strong and well-positioned to serve the evolving healthcare needs of their communities."
Quorum Health owns or operates 22 hospitals and 15 outpatient centers across 13 states as far east as North Carolina and as far west as Oregon. The company is coming off of last year’s Chapter 11 bankruptcy filing, in which it restructured to reduce $500 million in debt and swapped out its executive leadership.
Quorum Health CEO Dan Slipkovich said in the announcement that the sale paves the way for the hospital operator to grow its existing markets and target new potential acquisition opportunities as patient volumes impacted by the pandemic return to normal across the company's collection of community hospitals.
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“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,” the executive said in a statement. “In addition, this transaction provides QHR Health with new resources and partnerships as they continue to serve the country’s independent community healthcare providers.”
Founded in 1977, QHR Health offers hospital management and advisory support, revenue cycle management, outsourced IT, supply chain optimization, patient outreach, compliance tools and other services to independent hospital and health system customers.
"Strengthening independent community healthcare is foundational to a strong, national healthcare infrastructure," Buddy Gumina, founder and managing partner of Grant Avenue Capital, said in a statement. "The QHR team has demonstrated the ability to meaningfully impact and improve the performance of its clients through its broad solution set. We look forward to investing further in QHR, both organically and through acquisitions, to expand its breadth of services."