Search This Blog

Wednesday, April 29, 2020

Community Health Systems turns profit in Q1 despite major drops in revenue

Community Health Systems turned a profit in the first quarter.
After multiple consecutive quarters reporting earnings in the red, the Franklin, Tennessee-based health giant finally made it to the black, reporting $18 million in income in the quarter ending March 31. That was up from a loss of $118 million the same quarter a year earlier.
That was despite the financial hits from COVID-19, which caused the company to see revenue drop 10.4%, or about $3 billion, from its revenue of $3.4 billion for the same period in 2019.
In a statement, Wayne Smith, chairman and CEO of CHS, thanked healthcare workers treating patients in the response to the ongoing pandemic.

“Now, we are also focused on reopening services where we can, especially for patients who have deferred important surgeries, procedures and other appointments,” Smith said. “As we continue to manage our operations through the COVID-19 pandemic, our organization is doing everything possible to limit the spread of COVID-19 and to ensure our communities continue to have access to safe, quality healthcare.”
As other health systems have reported, CHS said it saw major drops in patient volumes in the latter part of March alongside increases in expenses due to supply chain and other issues caused by the the COVID-19 pandemic.
In April, CHS received about $245 million in grants under the CARES Act as well as $1.2 billion in accelerated Medicare payments as part of federal relief that had been made to hospitals.
The company  hosted an earnings call Wednesday at 11 a.m. ET.
https://www.fiercehealthcare.com/hospitals-health-systems/community-health-systems-reports-drops-due-to-covid

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.