Higher volumes and revenues weren’t enough to keep Community Health Systems from a $38 million net loss (-$0.29 per diluted share) for the second quarter, according to financial results for the period ended June 30 released Wednesday after market close.
The for-profit chain increased its net operating revenues by 6.2% year over year to $3.12 billion while same-store admissions and adjusted admissions rose 4.8% and 4.9%, respectively.
These increases alongside higher reimbursement rates, greater acuity and reduced contract labor costs helped the company mitigate—but not eliminate—its net loss compared to the second quarter of 2022’s $326 million shortfall (-$2.52 per diluted share).
In a statement, CEO Tim Hingtgen said CHS “executed key growth and expense management initiatives” during the quarter that improved the company’s performance but promised future strategic investments into its operations would steady the ship in quarters to come.
“We are in the process of redesigning numerous workflows that will further standardize and centralize key business functions across our organization, which we are referring to as Project Empower,” Hingtgen said in the company’s earnings release. “As part of Project Empower, we are nearing the launch of a new Enterprise Resource Planning platform which will enable us to leverage this new way of doing business as we streamline and enhance many business support services.”
CHS’ net loss landed right in line with analysts’ consensus estimates, though it comes on the heels of an unexpectedly rough first quarter in which executives said they were caught off guard by an influx of lower-paying Medicare Advantage patient volumes.
Year to date, CHS has now logged $89 million in net losses (-$0.68 per diluted share) compared to a $327 million loss (-$2.54 per diluted share) during the first half of 2022. Net operating revenues across the two quarters rose 3% year over year to $6.22 billion and same-store admissions and adjusted admissions rose 4.8% and 7.2%.
Of note, the most recent quarter included the divestiture of three hospitals, each in separate deals, as well as word that CHS would be selling another three of its Florida hospitals to Tampa General Hospital for about $290 million.
As of Aug. 2, CHS now spans 77 owned or leased affiliate hospitals and more than 1,000 sites of care. The organization reported $12.2 billion in net operating revenues and $46 million in net income attributable to stockholders across all of 2022.
Executives will discuss the quarter’s performance in greater detail during a Thursday morning investor call.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.