Lock Haven Hospital Sold

Community Health Systems divesting 38 hospitals

FRANKLIN, Tenn.—Community Health Systems, owner of the Lock Haven Hospital, has announced it is “spinning off” 38 hospitals, resulting in new ownership for the local facility.

Lock Haven Hospital and Sunbury Community Hospital are the two Pennsylvania facilities listed in this week’s announcement. A CHS release said the change in ownership is expected to be completed in the first quarter of 2016. The 38 hospitals, mostly in smaller markets, along with a consulting subsidiary, are to be spun off into what will be a new publicly traded company named Quorum Health Corporation.

A statement from Lock Haven hospital said Quorum “will be comprised of hospitals that are very similar to Lock Haven Hospital and that serve communities like Lock Haven. We are excited about the prospect of being a part of an organization that will be fully focused on strategies designed to help hospitals like ours grow and thrive.”

“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 Lock Haven Hospital,” said Steven Davis, hospital chief executive officer. “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.”

Davis went on to say, “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.”

According to a news article in the trade publication Modern Healthcare, the facilities picked for Quorum have 3,635 licensed beds in 16 states, most in communities of less than 50,000 people. In 84 percent of the markets, the hospital is the sole provider of acute-care services. The new company will also be headquartered in Tennessee, as is CHS.

CHS Chief Executive Officer Wayne Smith said in a statement, “This transaction will allow Quorom Health Corporation’s hospitals to focus on the changes in the healthcare delivery system, which are different in smaller community hospitals than in our larger and more urbanized markets.”