FRANKLIN, Tenn.--(BUSINESS WIRE)--Oct. 20, 2015--
Community Health Systems, Inc. (NYSE: CYH) announced today that Martin
D. Smith will join the executive management team of its planned spin-off
company, Quorum Health Corporation. Smith will serve as Executive Vice
President of Operations and joins healthcare veterans Thomas D. Miller,
who was previously named Chief Executive Officer of the new company, and
Michael J. Culotta, who has been named Chief Financial Officer.
Currently, Smith serves as Division III President of Operations for
Community Health Systems with operational and management
responsibilities for 35 affiliated hospitals in Illinois, Kentucky,
Tennessee and West Virginia, including 14 hospitals that will become
part of Quorum Health Corporation when the spin-off is completed. Smith
joined the organization in 1998 as a hospital CEO in Cleveland,
Tennessee. In 2005, he was named a vice president of group operations,
and he was promoted to Division President in 2008. Smith holds a
master’s degree in business administration from the University of
Tennessee.
“Marty Smith has distinguished himself as an excellent hospital operator
who understands the opportunities and complexities facing hospitals and
healthcare systems today,” said Wayne T. Smith, chairman and chief
executive officer of Community Health Systems, Inc. “He is highly
regarded by our hospital leadership teams, physicians and employees. He
has contributed to our company’s growth through the successful
integration of several recent hospital acquisitions and through his
commitment to excellence at the hospitals and physician practices served
by his Division.”
In a previous announcement, Thomas D. Miller was named Chief Executive
Officer of the spin-off company. Miller has more than 30 years of
experience in hospital operations and currently serves as Division V
President for Community Health Systems, overseeing operations in
Indiana, New Jersey, Ohio and Pennsylvania. During his tenure, he has
had direct management responsibility for 15 of the hospitals that will
become part of Quorum Health Corporation. Michael J. Culotta was
previously named Chief Financial Officer for Quorum Health Corporation.
Culotta currently serves as Vice President of Investor Relations for
Community Health Systems. Previously, he has served as CFO of two
publicly traded companies, LifePoint Hospitals and PharMerica
Corporation, both of which were successful spin-offs.
Smith went on to say, “Working together, Tom Miller, Mike Culotta, and
Marty Smith create a deeply experienced, operationally focused and
highly entrepreneurial management team. I am confident in their
abilities to successfully launch and guide Quorum Health Corporation, to
maximize opportunities across its portfolio of hospitals and to build
long-term growth.”
On August 3, 2015, Community Health Systems announced its plans to form
Quorum Health Corporation by spinning off to its stockholders a group of
38 hospitals and Quorum Health Resources, LLC, a leading hospital and
management consulting business. The spin-off is intended to be tax-free
to Community Health Systems and its stockholders and is expected to be
completed in the first quarter of 2016. Quorum Health Corporation will
be an independent, publicly traded company and intends to have its
common stock authorized for listing on the New York Stock Exchange.
A Form 10 Registration Statement has been filed with the Securities and
Exchange Commission by Quorum Health Corporation. The Form 10 will be
updated in future amendments. The transaction is subject to customary
conditions, certain legal and valuation opinions, effectiveness of the
Form 10 filing, and final approval and declaration of the distribution
by the Community Health Systems, Inc. Board of Directors. The
transaction is not subject to a stockholder vote. There can be no
assurance regarding the ultimate timing of the spin-off or that it will
be completed. Community Health Systems may, at any time, and for any
reason until the proposed transaction is complete, abandon the spin-off
or modify or change the terms.
A copy of the Form 10 Registration Statement, including subsequent
amendments, is available on the Investor Relations page of Community
Health Systems’ website: www.chs.net.
Advisors
Credit Suisse is serving as Community Health Systems’ financial advisor,
and Bass, Berry & Sims PLC and Bradley Arant Boult Cummings LLP are
serving as legal advisors to Community Health Systems in connection with
the proposed spin-off.
About Community Health Systems, Inc.
Community Health Systems, Inc. is one of the largest publicly traded
hospital companies in the United States and a leading operator of
general acute care hospitals in communities across the country. Through
its subsidiaries, the Company currently owns, leases or operates 198
affiliated hospitals in 29 states with an aggregate of approximately
30,000 licensed beds.
The Company has announced plans for a spin-off transaction to create a
new, publicly traded company, Quorum Health Corporation, with 38
affiliated hospitals and related outpatient services in 16 states,
together with Quorum Health Resources, LLC, a subsidiary providing
management and consulting services to non-affiliated hospitals. The
transaction is expected to close during the first quarter of 2016.
The Company’s headquarters are located in Franklin, Tennessee, a suburb
south of Nashville. Shares in Community Health Systems, Inc. are traded
on the New York Stock Exchange under the symbol “CYH.” More information
about the Company can be found on its website at www.chs.net.
Forward-Looking Statements
Certain statements contained in this communication may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements include, but
are not limited to, statements regarding the expected timing of the
completion of the spin-off transaction, the benefits of the spin-off
transaction to either Community Health Systems or Quorum Health
Corporation, the tax-free treatment of the spin-off transaction, the
anticipated management of the business to be spun off, the market
position of the business to be spun off and other statements that are
not historical facts. Such statements are based on the views and
assumptions of the management of the Company and are subject to
significant risks and uncertainties. There can be no assurance that the
proposed transaction or these future events will occur as anticipated,
if at all, or that actual results will be as expected. Actual future
events or results may differ materially from these statements. Such
differences may result from a number of factors, including but not
limited to: the timing and completion of the proposed transaction; a
failure to obtain necessary regulatory approvals; a failure to obtain
assurances of anticipated tax treatment; a deterioration in the business
or prospects of the Company or Quorum Health Corporation; adverse
developments in the Company’s or Quorum Health Corporation’s markets;
adverse developments in the U.S. or global capital markets, credit
markets or economies generally; the risk that the benefits of the
proposed transaction may not be fully realized or may take longer to
realize than expected; the impact of the proposed transaction on the
Company’s third-party relationships; the Company’s ability following
completion of the spin-off to identify and acquire additional hospitals
in larger and more urbanized markets with terms that are attractive to
the Company and to integrate such acquired hospitals; and changes in
regulatory, social and political conditions. Additional risks and
factors that may affect results are set forth in the Company’s filings
with the Securities and Exchange Commission, including the Company’s
most recent Annual Report on Form 10-K. The forward-looking statements
speak only as of the date of this communication. The Company does not
undertake any obligation to update these statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151020006746/en/
Source: Community Health Systems, Inc.
Community Health Systems, Inc.
Investor Contact:
W.
Larry Cash, 615-465-7000
President of Financial Services and Chief
Financial Officer
or
Media Contact:
Tomi Galin,
615-628-6607
Senior Vice President, Corporate Communications,
Marketing and Public Affairs