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Dispute between Community Health Systems, Quorum Health settled by arbitrators

January 10, 2019 / Tina Reed

Tennessee-based hospital company Quorum Health Corporation will receive $11.4 million in payments it made under transition agreements with health giant Community Health Systems (CHS), an arbitrator ruled last week. However, an arbitration panel also ordered Quorum to pay $1.5 million of disputed payments it withheld from CHS. The issue dates back to 2016, when CHS first spun off nearly 40 hospitals to form Quorum as a separate company which would receive transition services from CHS such as information technology, payroll, billing and collections services, according to HealthLeaders. In 2017, CHS brought arbitration against Quorum over certain amounts of money that Quorum withheld claiming it was being forced to pay more than originally anticipated.