Community Health Systems Inc. plans to terminate, with effect from Sept. 30, two service agreements with Quorum Health Corp. due to alleged breaches.
The contracts were established in connection with Quorum Health's spin off from Community Health on April 29, 2016, and define services to be provided by Community Health to Quorum Health.
Community Health notified Quorum Health March 19 that it wants to terminate the two contracts.
The matter is pending before the American Arbitration Association where Community Health is seeking about $9 million in payment related to the two service agreements.
Quorum Health plans to contest the charges as not payable and has made a counterclaim for terminating the agreements. The company said it suffered as a result of these agreements and other actions taken by Community Health in connection with the spinoff.
The arbitration has been scheduled for June 18-29. A decision is expected by early August 2018.
Community Health and Quorum Health operate hospitals in the U.S., providing healthcare services including general acute care, emergency room, general and specialty surgery, critical care and internal medicine among others.