Community Health Systems Reports Revenues Up 1.4%
FRANKLIN, Tenn. – Community Health Systems Inc. reported net operating revenues of $4.846 billion for the third quarter, up 1.4% from the $4.780 billion reported for the same period a year ago.
CHS, which operates ValleyCare Health System of Ohio in northeastern Ohio and Sharon Regional Health System in Sharon, Pa., reported its quarterly and nine-month results after the close of markets Monday.
Income from continuing operations attributable to CHS common stockholders decreased to $60 million, or 51 cents per share (diluted), for the three months ended Sept. 30, compared to $61 million, or 54 cents per share (diluted), for the same period in 2014. Adjusted earnings for the three months ended Sept. 30 was $661 million compared with $750 million for the same period in 2014, representing an 11.9% decrease.
Total patient admissions for the period were down 1.9% from a year ago, while total adjusted admissions were up.
For the first nine months of 2015, net operating revenues totaled $14.639 billion, up 6.7% from $13.721 billion for the same period in 2014.
Income from continuing operations attributable to common stockholders increased to $268 million, or $2.32 per share (diluted), for the nine months ended Sept. 30, compared to $20 million, or 18 cents per share (diluted), for the same period in 2014.
Adjusted earnings for the nine-month period was $2.144 billion, up from $1.993 billion for the same period in 2014, a 7.6% increase.
Total admissions for the nine-month period were up 3.5% from a year ago and total adjusted admissions were up 5.2%.
Third-quarter results fell short of expectations, acknowledged Wayne T. Smith, CHS chairman and CEO. Factors in the weaker-than-expected results included volume weakness, an “unfavorable shift in payor mix,” and higher operating expenses, particularly in the former Health Management Associates Inc. hospitals that CHS acquired, the CEO said.
“Our management team is confronting these challenges by engaging in a rigorous review of our opportunities and implementing action plans to drive immediate improvements and long-term growth. We are especially focused on fundamental operating strategies, including volume initiatives, expense management, productive investments and physician recruitment,” Smith said.
In addition, CHS’s plan to spin off 38 affiliated hospitals into Quorum Health Corp. “will further refine our operating focus on both our core markets and regional networks where we believe we have the greatest potential to leverage growth opportunities,” he said.
Copyright 2020 The Business Journal, Youngstown, Ohio.