CHS Reports $3.3B in First Quarter Revenues
FRANKLIN, Tenn. -- Net operating revenues for Community Health Systems Inc. during the first quarter of the year were up slightly from a year earlier, the company reported Monday.
CHS owns ValleyCare Health System of Ohio, which operates Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland. CHS purchased those three hospitals and other assets of bankrupt Forum Health in 2010. Overall it owns, leases or operates 135 hospitals in 29 states.
Net operating revenues for the three months ended March 31 totaled $3.3 billion, a 0.4% increase from the $3.29 billion for the same period in 2012. Income from continuing operations decreased to $96.3 million, or 86 cents per share (diluted), for the three months ended March 31, compared with $99.7 million, or 85 cents per share (diluted), for the same period in 2012, the company said.
Adjusted earnings for the three months ended March 31 was $493.8 million compared with $535.5 million for the same period in 2012, representing a 7.8 % decrease.
The consolidated operating results for the three months reflect a 4.4% decrease in total admissions and a 3.5% decrease in total adjusted admissions compared with the same period in 2012. On a same-store basis, admissions decreased 5.9% while adjusted admissions decreased 5.2% compared with the same period in 2012. Seasonality effects caused by the loss of one day from the 2012 leap year and the movement of holidays on the calendar during the three months ended March 31 resulted in approximately half of the decrease in adjusted admissions. On a same-store basis, net operating revenues increased 1.4% compared with the same period in 2012.
The first-quarter results reflect the “current dynamic market conditions and a more challenging operating environment for health-care providers” and CHS’ ability to adjust to those conditions and realize revenue improvement on a same-store basis reflects the strength of the company’s operating model across its markets, said Wayne T. Smith, CHS chairman, president and chief executive officer. He pointed to the company’s recently announced strategic alliance with the Cleveland Clinic as an example of the opportunities it continues to identify for collaboration to meet the needs of the changing health-care landscape."
“As we navigate through this transformative period for our industry, we look forward to the growth opportunities ahead for Community Health Systems in 2013 as the fundamental aspects of health-care reform begin to take shape. We believe hospitals will ultimately benefit from the insurance coverage expansion and the potential volume improvement,” he said. “Further, we are well positioned for success in this new environment with a strong and diverse geographic footprint, a solid infrastructure and a proven ability to deliver sustainable results.”
Published by The Business Journal, Youngstown, Ohio.
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