Banner Health has announced it has signed an asset purchase agreement to sell Banner Lassen Medical Center to an affiliate of Quorum Health. The transaction is expected to be completed in December 2026, pending required regulatory approvals.
According to a press release issued by the hospital, the agreement represents both organizations’ commitment to Lassen County and surrounding communities by supporting continued access to local healthcare under an owner with experience in rural hospital operations in California.
Quorum Health operates 11 hospitals across nine states, including one in California. The organization stated it is committed to strengthening long-term viability and access to care in rural communities, using a local oversight model to align healthcare services with community needs.
“We are committed to the future of health care in Lassen County, and that commitment led us to find the right partner to continue delivering great care here in Susanville,” said Margo Karsten, the senior vice president of Banner Health’s Western Division.
“An organization with experience operating rural health care within California and a dedication to supporting local teams is the ideal partner to serve this community’s health care needs while preserving access to care close to home.”
Transition to Nonprofit Model
Prior to the close of the BLMC transaction, Quorum Health is expected to transition to a nonprofit model and operate as Healthside Partners. As a result of this transition, the affiliate purchasing Banner Lassen Medical Center will be a nonprofit entity at the time the transaction closes.
Quorum Health’s existing leadership team, led by CEO Chris Harrison, will remain in place with Healthside Partners.
“We’re honored to have the opportunity to serve the residents of Lassen County, and support continued access to care,” Harrison said. “Improving health care in rural Northern California supports our mission to create sustainable health care solutions in more rural and midsized communities.”
Impact on Employees and Patients
Quorum has indicated that it will offer employment to all active employees who satisfy Quorum’s standard hiring criteria at the time of the transition.
For local residents, hospital officials say patients can schedule and keep appointments as usual, and day-to-day operations will continue without interruption during the transition. The organizations emphasized they are committed to supporting a smooth transition for patients, employees, and the community.
About the Organizations
Banner Lassen is currently a part of the nonprofit Banner Health system, offering obstetrics, general surgery, orthopedic surgery, inpatient and outpatient medical imaging services, rehabilitation services and emergency care.
Quorum Health is an operator of general acute care hospitals and outpatient services in the U.S. Through its subsidiaries, the company owns, leases, or operates a diversified portfolio of 11 affiliated hospitals in rural and midsized markets across nine states.
Healthside Partners is a newly formed nonprofit healthcare company focused on supporting healthcare in rural and midsized communities. In Fall 2026, Quorum Health is expected to finalize the transition of its network of affiliated hospitals, physician practices, and outpatient facilities across nine states to Healthside Partners.
For more information, residents can visit bannerhealth.com/lassen or HealthsidePartners.com. Anyone needing to contact the hospital with questions regarding care during the transition can reach BLMC at 1.530.252.2000.
