Subsequent Events

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events Disclosure

17.  SUBSEQUENT EVENTS 

The Company evaluated all material events occurring subsequent to the balance sheet date for events requiring disclosure or recognition in the condensed consolidated financial statements.

Effective July 31, 2015, one or more subsidiaries of the Company sold Payson Regional Medical Center (44 licensed beds) in Payson, Arizona and related outpatient services to Banner Health for approximately $20 million in cash. The sale follows the termination of the lease of the hospital by the lessor. The transaction is not expected to have a material impact on the financial results of the Company.

On August 3, 2015, the Company announced that it plans to create a new, independent publicly-traded company by spinning off to its shareholders a group of hospitals as well as Quorum Health Resources, LLC, the Company’s hospital management and consulting business.  The transaction, which would be effected through the distribution of common stock to the Company’s shareholders, is intended to be tax free to the Company and its shareholders, and is expected to close in the first quarter of 2016.  Upon completion of the transaction, the new company, to be named Quorum Health Corporation, will include 38 of the Company’s hospitals with approximately 3,635 beds in 16 states.  The completion of the spin-off is subject to the effectiveness of documents required to be filed with the U.S. Securities and Exchange Commission, requisite regulatory approvals, execution of operational transition agreements, the receipt of opinions of tax, legal and valuation advisors (including as to the tax-free nature of the transaction), market conditions and final Board approval.  There can be no assurance regarding the ultimate timing of the spin-off, or that it will be completed.