Quorum Health Corporation announced unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter, net operating revenues decreased $22.0 million to $527.6 million, compared to $549.6 million for the same period in 2016, a 4.0% decrease. The $22.0 million decrease was primarily attributable to a $12.8 million decrease in net operating revenues resulting from the two hospitals divested in December 2016 and an $11.0 million decrease resulting from the company's inability to accrue in the 2017 period for the California Hospital Quality Assurance Fee program revenues for the 2017 to 2019 program period pending approval by Centers for Medicare and Medicaid Services. Adjusted EBITDA was $26.1 million, compared to $56.2 million for the same period in 2016. The two hospitals divested in December 2016, in addition to one hospital divested on March 31, 2017, negatively impacted EBITDA by $0.7 million and $3.4 million for the three months ended March 31, 2017 and 2016, respectively. Adjusted EBITDA was negatively impacted by the Company's inability to accrue for the California HQAF program in the 2017 period pending CMS approval, as stated above. Income from operations was $1,026,000 against $21,091,000 a year ago. Loss before income taxes was $26,504,000 against $6,361,000 a year ago. Net loss was $27,205,000 against $4,687,000 a year ago. Net loss attributable to the company was $27,561,000 or $0.99 per basic and diluted share against $5,002,000 or $0.18 per basic and diluted share a year ago. Net cash provided by operating activities was $18,526,000 against $24,397,000 a year ago. Capital expenditures for property and equipment was $23,217,000 against $12,840,000 a year ago. Capital expenditures for software was $1,506,000 against $2,526,000 a year ago. EBITDA was $26,142,000 against $56,224,000 a year ago. Loss per share attributable to the company, excluding adjustments was $0.85 against earnings per share attributable to the company, excluding adjustments of $0.07 a year ago.

The company is maintaining its previously issued financial outlook for the year ending December 31, 2017. For the year, the company expects net operating revenues to range from $2.050 billion to $2.100 billion. The company expects adjusted EBITDA to range from $150 million to $170 million and adjusted EBITDA, Adjusted for Potential Divestitures to range from $170 million to $200 million. The guidance gives effect to: divestitures and potential divestitures stated above, the approval of the California Department of Health Care Services' Hospital Quality Fee Program by CMS, which the company estimates to be approved in the fourth quarter of 2017 at approximately $21 million, approximately $13 million less than 2016, the reduction of approximately $7 million in electronic health records incentives earned in 2017 compared to the 2016 amounts, the inclusion of approximately $10 million to $13 million of non-cash stock-based compensation and other non-cash benefits expense and approximately $25 million to $26 million of non-cash insurance expense, and no estimate for the effects of any changes to the Affordable Care Act. Adjusted EBITDA, Adjusted for Potential Divestitures includes the same assumptions above, in addition to excluding the negative EBITDA of the potential divestitures from the beginning of the year.

The company reported impairment of long-lived assets and goodwill of $3,300,000 for the first quarter 2017.