Community Health Delays Quorum Spinoff, Citing Market Conditionsby
Community Health Systems Inc. delayed the spinoff of a consulting unit, citing market conditions after a rout in global stocks.
The hospital company now expects to complete the transaction to create Quorum Health Corp. by the end of June, according to a statement Thursday, as many as three months later than originally planned.
The market slump sparked by a selloff in China has added pressure to hospital companies, which had already been falling over concerns that patient traffic growth is slowing. Community Health shares have dropped 14 percent in 2016, compared with a 4.9 percent drop for the Standard & Poor’s 500 Index.
The hospital chain’s shares slid 5 percent Thursday to $22.83, the lowest closing price since June 2012.