Community Health Systems is still working to get back in the black amid a challenging operating environment.
On Wednesday afternoon, the for-profit system reported a net loss of $38 million, or 29 cents per diluted share, in the second quarter. It was, however, a significant improvement over the year-ago period’s $326 million net loss, or $2.52 per share. The Franklin, Tennessee-based company said results were driven by higher inpatient and outpatient volumes, higher-acuity cases, increased reimbursement rates and reduced contract labor costs, among other factors.
Revenue rose 6.2% year over year to $3.12 billion, and same-store admissions grew 4.8% in the quarter. Average length of stay remained relatively flat at 4.5 days.
Community Health Systems leaders are hoping higher patient volumes and efforts to centralize operations will have a positive impact on earnings as the year progresses, CEO Tim Hingtgen said in a Wednesday news release. Executives will discuss the latest results on an earnings call Thursday morning.
Operating expenses were up 1.9% year-over-year to $2.87 billion, including a 3.3% increase for salaries and benefits and a 3.5% increase for supplies.
Community Health Systems, which operates 77 hospitals and more than 1,000 other care sites, continues to sell off hospitals, most recently agreeing to sell three Florida facilities to Tampa General Hospital in a deal valued at about $290 million. Earlier this year, the system sold its last hospital in West Virginia and also announced plans to exit North Carolina. President and Chief Financial Officer Kevin Hammons told investors in February the company was conducting ongoing discussions about potential transactions to help pay down debt and reinvest resources.
Community Health Systems’ financial results contrast those of other for-profit healthcare systems. Nashville, Tennessee-based HCA Healthcare, King of Prussia, Pennsylvania-based Universal Health Services and Dallas-based Tenet Healthcare increased projections for 2023 as profits grew due to higher patient volumes and lower contract labor costs.
