Community Health Issues Update On Spin Of Quorum, Notes Revised Timeline Due to 'Market Conditions'

Community Health Systems CYH, an operator of acute care hospitals across the US, announced back in August 2015 that it will spin off its Quorum Health Resources entity, a hospital management and consulting business, in the first quarter of 2016.

On Friday, Community Health Systems disclosed a change to its previously projected timeline to complete the spin-off of Quarom. The company now expects the transaction to be completed by June.

Community Health Systems stated that it is delaying the spin off due to "various reasons, including market conditions." The company did however reaffirm that the spin-off is expected to be a tax-free transaction to stockholders.

Quorum Health will be an independent, publicly traded company and trade on the New York Stock Exchange under the ticker "QHC."

Shares of Community Health have lost more than 57 percent over the past year.