CHS Reports Revenues Down 5.1% in 2016
YOUNGSTOWN, Ohio – Community Health Systems Inc., which plans to sell its four local hospitals, finished 2016 with net operating revenues down 5.1% from a year earlier.
CHS announced Thursday that it would sell ValleyCare Health System of Ohio and Sharon Regional Health System of Sharon, Pa. Terms have not been disclosed.
The company reported at the close of business Monday that it ended the year with net operating revenues of $18.44 billion, down from $19.44 billion for 2015.
Net operating revenues for the fourth quarter, which ended Dec. 31, totaled $4.47 billion, a 6.9% decrease from $4.80 billion for the same period in 2015.
“We concluded the year with solid results in the fourth quarter, including sequential improvements in same-store net operating revenue, adjusted EBITDA and cash flow from operations,” said Wayne T. Smith, chairman and CEO.
“Significant progress has been made in our work to divest certain hospitals and other operations, enabling a reduction in our debt and the opportunity to reshape our portfolio into a stronger, more sustainable organization,” he continued. “Moving forward in 2017 and beyond, we are intently focused on efficiency improvements in our operations, strategic initiatives that enhance growth in our markets, and portfolio optimization that reduces our total debt. Most importantly, we remain committed to providing high-quality, safe health care for the patients and communities we serve.”
Adjusted earnings before interest, tax, depreciation and amortization for the year were $2.23 billion compared with $2.67 billion for the same period in 2015, a 16.7% decrease. Total admissions were down 8.8% compared with 2015, and total adjusted admissions were 8.4% lower. On a same-store basis, admissions decreased 1.9% and adjusted admissions decreased 0.5%.
On a same-store basis, net operating revenues increased 1.4% over the year.
For the quarter, adjusted earnings were $564 million compared with $527 million for the same period in 2015, a 7.0% increase. Total admissions decreased 11.6%, and total adjusted admissions were down 12.7% compared with the same period in 2015. On a same-store basis, both admissions and adjusted admissions decreased 1.4% for the quarter.
On a same-store basis, net operating revenues increased 0.5% during the three-month period compared with a year ago.
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