US-based Community Health Systems (CHS) has unveiled plans to create a new hospital firm by placing 38 hospitals and hospital management and consulting business Quorum Health Resources under a subsidiary.
With headquarters in middle Tennessee, the new hospital firm Quorum Health Corporation will operate independently and include the existing board of directors and management team.
Community Health Systems chairman Wayne Smith said: "Over the past 30 years, Community Health Systems has evolved from a collection of smaller hospitals into a much more complex and diversified portfolio of hospitals, outpatient services and healthcare systems across the country.
"We know how important hospitals are to their communities and recognise that smaller facilities have distinct opportunities and different challenges than those in larger markets, where the majority of our assets are located."
The new hospital firm will comprise a diversified portfolio of 38 hospitals with 3,635 licensed beds across 16 states of the US.
The company will also include Quorum Health Resources that offers hospital management and consulting services to 150 non-affiliated hospitals across the US.
CHS will support the firm by providing purchased services in select areas such as information technology, billing, collections and payroll services.
Once the deal concludes, CHS will have 160 affiliated hospitals in 22 states, which is claimed to be one of the publicly traded hospital companies in the US.
Subject to customary conditions, the transaction is expected to be completed in the first quarter of 2016.