owner of Porter Regional Hospital--and of two other Northwest Indiana
hospitals as well--is considering a sale as one possible response to
significant financial losses and a plummeting stock price.
Systems (CHS) of Franklin, Tenn.--which acquired Porter hospital in
2007--announced, in a statement released on Monday, Sept. 19, that the
company is right now “exploring a variety of options with financial
sponsors, as well as other potential advisors.
are at a very preliminary stage and there is no timeline established for
this review,” the statement added. “There can be no certainty that the
exploration will result in any kind of transaction. The company does not
expect to make further public comment regarding these matters while the
exploration process takes place.”
purchase of Porter Hospital nine years ago was one in a series of aggressive
acquisitions which saw its total holdings grow from 122 hospitals with an
aggregate of 18,000 licensed beds in 2010 to 196 hospitals with 30,000
licensed beds in January 2016, including IU Health LaPorte Hospital in
LaPorte and IU Health Starke Hospital in Knox.
earnings, however--CHS reported a net loss of $1.432 billion or $12.91 per
share in the second quarter of 2016--the company divested itself of 38
hospitals in April, accounting for more than 3,500 beds, by spinning off an
independent public company named Quorum Health Corporation.
CHS was trading at
around $10.32 per share this morning, well under its best price ever--over
$60 per share--about a year ago.
Health, IU Health LaPorte, and IU Health Starke released the following joint
statement to the Chesterton Tribune today: “LaPorte, Porter Regional,
and Starke hospitals are focused on operating local hospitals that improve
the health of our patients and communities. Our full attention has and
always will be on providing safe, high-quality care for our patients, and
meeting the pressing community health needs before us. Operationally, we are
focused on strategic planning for growth across the system, and supporting
the clinical excellence and development of healthcare providers and
colleagues who take care of our community.”