CHS Reports Revenues Down Slightly for Year
YOUNGSTOWN, Ohio -- Community Health Systems Inc. reports net operating revenues for the fourth quarter of 2013 were down 1.4% from the same period the year before, but for all of 2013 were off just 0.2% from 2012.
CHS owns ValleyCare Health System of Ohio, where it operates Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland. In January, CHS completed its acquisition of rival Health Management Associates Inc. and earlier this month announced an agreement to acquire the assets of Sharon Regional Health System in Sharon, Pa.
“Our financial and operating results for the fourth quarter reflect a continuation of the challenging operating environment for health care providers over the past year,” offered Wayne T. Smith, CHS chairman and CEO. “As we previously announced, weakness in volume, combined with higher bad debts and a less favorable payor mix, affected our operating revenues during the fourth quarter. However, we have continued to focus on our cost management and strategic initiatives to efficiently manage our operations in this challenging environment, and we are pleased with the progress being made across our hospital network.”
The fourth-quarter and year-end financial results showed net operating revenues for the three months ended Dec. 31 totaled $3.2 billion, down from $3.3 billion for the same period in 2012. Income from continuing operations decreased to $52.3 million for the quarter, compared with $85.6 million for the same period in 2012.
Adjusted earnings for the three months ended Dec. 31 was $441.8 million, down 8.3% from $481.9 million for the same period in 2012. Excluding the $3.5 million of reserves related to what CHS characterized as “certain legal matters” and $8.8 million in expenses related to the HMA acquisition, adjusted earnings totaled $454.1 million for the quarter.
Net operating revenues for 2013 totaled $13.00 billion, compared with $13.03 billion for 2012. Income from continuing operations decreased to $217.3 million for the year ended Dec. 31, compared with $346.3 million for the same period in 2012.
Adjusted earnings for the year ended Dec. 31 totaled $1.73 billion compared with $1.98 billion for the same period in 2012, a 12.8% decrease. Excluding the $101.5 million reserve for the settlement of claims arising from the government’s investigation into the company’s short-stay hospital admissions and $14.1 million of expenses related to the HMA acquisition, adjusted earnings reached $1.84 billion for the year ended Dec. 31.
Published by The Business Journal, Youngstown, Ohio.
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