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Quorum Health Sells its QHR Health Division to Grant Avenue Capital
BRENTWOOD, Tenn., June 1, 2021 – Quorum Health Corporation, a national leader of quality-focused, clinically driven hospitals, today announced the sale of its advisory and outsourced services subsidiary, Quorum Health Resources, LLC d/b/a QHR Health to an affiliate of Grant Avenue Capital, LLC, a healthcare-focused private equity firm. The transaction was effective as of May 28, 2021.
“Building our hospital system – by capturing increased market share in our existing locations and through strategic acquisitions – is our company’s primary focus as patients and volumes begin to return to community hospitals,” said Quorum Health Chief Executive Officer Dan Slipkovich. “This transaction positions QHC to refocus on our core operations. The capital generated by the transaction will allow us to accelerate certain high priority projects and capital investment to expand health services in our existing markets and invest in new market opportunities. In addition, this transaction provides QHR Health with new resources and partnerships as they continue to serve the country’s independent community healthcare providers.”
QHR Health will continue to operate from its corporate headquarters in Brentwood, Tenn. The company will also continue to provide Quorum Health with supply chain support and select consulting services.
“We believe in the importance of QHR Health’s vision to strengthen independent community healthcare,” said Buddy Gumina, Founder and Managing Partner of Grant Avenue Capital. “We look forward to partnering with the QHR Health management team and expanding the platform’s breadth of services to support their clients’ mission of providing access to excellent local healthcare in the communities they serve.”
About Quorum Health
Quorum Health is a leading operator of general acute care hospitals and outpatient services in the U.S. Through its subsidiaries, the company owns, leases, or operates a diversified portfolio of 22 affiliated hospitals in rural and mid-sized markets across 13 states with an aggregate of 1,817 licensed beds. Through its network of affiliated hospitals, physician practices and healthcare providers, the company is focused on future strategic growth and investment with the goal of expanding its footprint and addressing the critical healthcare of patients in their local communities.
About QHR Health
QHR Health is the industry’s leading health solutions provider serving independent, critical access and rural hospitals and health systems across the U.S. For more than 40 years, QHR Health has collaborated with clients to support local access to quality healthcare services in communities ranging from small rural towns to larger population centers.
About Grant Avenue Capital, LLC
Grant Avenue Capital is a healthcare-focused, middle-market private equity firm targeting investments alongside forward-thinking management teams that seek an experienced and innovative investor with highly flexible capital, both in terms of duration and structure. While a typical investment will involve companies generating approximately $5 million to $25 million of EBITDA, Grant Avenue Capital has significant support to complete larger transactions through strategic co-invest relationships. The firm focuses on control buyouts, buy-and-builds, corporate carve-outs, joint-control partnership investments, and special situations.
In addition, the Grant Avenue Foundation supports employees and portfolio companies of Grant Avenue Capital that are actively engaged with healthcare-oriented charitable organizations.