Quorum Health Corp., the operator of two dozen hospitals in 14 states, is preparing for a potential bankruptcy filing as the looming flood of coronavirus patients puts pressure on the already shaky finances of health-care providers throughout the U.S.
Management has been negotiating with stakeholders on a variety of possible deals, according to people with knowledge of the company’s plans, who asked not to be named discussing private negotiations. At the same time, Quorum is preparing Chapter 11 plans as hope fades for an out-of-court solution, the people said. No decision has been made, and the outcome could still change.
The chain’s dilemma may be just the beginning of a wave of trouble for American hospitals, especially in less populated areas like the ones served by Quorum. Even before the coronavirus hit, hospitals have been losing profitable elective procedures to outpatient facilities while still handling patients who lack good insurance.
Now as medical centers cancel optional treatments to spare resources for coronavirus patients, their slim revenue margins are being further squeezed, and federal relief may not be quick or abundant enough to save them. More than 30 facilities went bankrupt last year.
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