NEW YORK (S&P Global Ratings) June 2, 2021--U.S.-based hospital and outpatient services provider Quincy Health LLC's (B-/Stable/--) announced plan to sell its Quorum Health Resources (QHR) business to Grant Avenue Capital for roughly $125 million does not affect its ratings or outlook. QHR generates about $60 million in annual revenues and about $17 million in EBITDA. While the business generates a higher margin than Quincy Health's core business, it contributes a very small portion of the company's total revenues and EBITDA. The company intends to use the proceeds to repay outstanding amounts on its term loan facility and ABL facility. With weaker-than-expected emergency department volume and continued contract labor pressure, we continue to expect the company will remain highly leveraged
