Quorum Health Corporation

Quorum Health's April 2020 bankruptcy collapsed a rural hospital operator spun off from Community Health Systems. The spinoff had loaded Quorum with debt while assigning it CHS's weakest assets - rural hospitals in declining communities with unfavorable payer mixes. When COVID hit, elective procedures stopped, and Quorum couldn't service debt. The company demonstrated how hospital spinoffs can be engineered to fail: parent companies extract value while leaving the spun entity with structural vulnerabilities.