CHS Net Operating Revenues Approach $5B for Q1
FRANKLIN, Tenn. – Net operating revenues at Community Health Systems Inc. for the first three months of 2016 totaled $4.999 billion, a 1.8% increase from the $4.911 billion for the same period in 2015.
The company, which owns ValleyCare Health System of Ohio, reported its first quarter results at the close of business Monday.
Adjusted earnings for the three months ended March 31, 2016, were $633 million compared with $715 million for the same period in 2015, representing an 11.5% decrease.
The consolidated operating results for the quarter reflect a 2.6% decrease in total admissions, and a 0.7% increase in total adjusted admissions, compared with the same period in 2015. On a same-store basis, admissions decreased 2.0% while adjusted admissions increased 1.3% during the first quarter, compared with the same period in 2015. On a same-store basis, net operating revenues increased 2.2% compared to the first quarter of 2015.
Income from continuing operations attributable to common stockholders decreased to $12 million, or 11 cents per share compared with $92 million, or 79 cents per share (diluted), for the same period in 2015, the company said.
Results for the quarter include 13 cents per share related to impairment of long-lived assets and 2 cents per share related to expenses from the spin-off of Quorum Health Corp. The spinoff of QHC, which included 38 affiliated hospitals and related outpatient services in 16 states, took place Friday. Excluding these items, income from continuing operations was 27 cents per share.
“We intend to use the substantial majority of the net proceeds of $1.21 billion from the QHC spin-off to reduce our debt, and we expect other potential divestiture transactions this year will help drive down our debt even further,” Wayne T. Smith, CHS chairman and CEO, said in a prepared statement. “As we refine our portfolio into what we anticipate will be a more sustainable, higher-margin group of hospitals, our resources and future investments can be targeted into markets where we have the greatest opportunity to achieve performance improvement in our operations and financial results.”
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