Quorum Health, a private equity-backed chain of 11 mostly rural hospitals, is trying to become a nonprofit in a deal that would increase its debt by about 30%, or roughly $300 million, STAT reported on Wednesday. Individual investor-owned hospitals have converted to nonprofit status before, but converting an entire chain is highly unusual.
The stakes are high for the towns involved. About 75% of Quorum's hospitals are sole community providers or critical access hospitals, according to the company's announcement, meaning many patients have no nearby alternative for emergency or inpatient care.
