Quorum CEO leaving company after just 2 months

Dive Brief:

  • Joey Jacobs is stepping down from his role as Quorum Health’s CEO, as the Tennesee-based system moves onto its third CEO this year.
  • Dan Slipkovich, founder and former CEO of Capella Healthcare and a member of Quorum’s board of managers, will replace Jacobs as interim CEO, according to a Friday press release. Jacobs was appointed in July, along with a new board of managers, following the for-profit hospital operators emergence from Chapter 11 bankruptcy and restructuring.
  • Suzanne Gibbons, a managing member at Davidson Kempner, will now serve on Quorum’s board of managers.

Dive Insight:

The pandemic hasn’t been easy on providers. But Quorum, which operates 23 hospitals in 13 states, may have been particularly ill-positioned for COVID-19, filing for Chapter 11 bankruptcy in April to address liquidity needs and continue caring for patients. In June, it swiftly entered into an agreement with a majority of its lenders to reorganize the company and reduce its debt by about $500 million.

Quorum went public in May 2016 with 38 hospitals. In 2017, private equity firm KKR took a 5.6% stake in the system for $11.3 million. 

Following Quorum’s emergence from bankruptcy, Jacobs, former CEO of Acadia Healthcare, was appointed as CEO. But now, the company’s statement said Jacobs and the board “together have determined that it is in the best interest of the Company to move forward with a different leader.”

Slipkovich, dubbed interim CEO, has more than 38 years of experience in hospital operations. He was CEO of Capella for eight years, until it merged with RegionalCare Hospital Partners. Prior to that, he held executive positions at Providence Healthcare, LifePoint Hospital and HCA Healthcare.

Jacobs succeeded Bob Fish, who served as Quorum’s CEO for about two years.

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