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Community Health Systems Sees Revenue Up $13B
FRANKLIN, Tenn. – Community Health Systems Inc., parent company of ValleyCare Health Systems of Ohio, says it expects net operating revenues for 2013 of up to $13 billion.
CHS issued preliminary financial and operating results for last year and preliminary guidance for 2014 in connection with the company’s pending acquisition of Health Management Associates Inc. and the upcoming vote by HMA stockholders as well as other acquisition-related activities. The selected financial and operating data, released Monday, are subject to revision upon finalization of the company’s annual financial and accounting procedures.
CHS anticipates reporting its complete financial results for 2013 on Feb. 18, followed by an earnings call the next day. A reconciliation of adjusted earnings to net cash provided by operating activities will be provided in connection with that release.
In the news release, CHS said it expects net operating revenues for the year ended Dec. 31 to range from $12.975 billion to $13.000 billion and expects adjusted earnings to range from $1.825 billion to $1.850 billion. That excludes expenses related to the pending HMA acquisition and approximately $101.5 million reserved for the settlement of claims arising from the government’s investigation into the company’s short-stay hospital admissions and investigations at the company’s hospital in Laredo, Texas. CHS said it also negotiating a corporate integrity agreement with the Office of the Inspector General of the Department of Health and Human Services.
The consolidated operating results for the year ended Dec. 31, are expected to reflect a 6.7% decrease in admissions and a 4.0% decrease in adjusted admissions compared with the year ended Dec. 31, 2012. On a same-store basis, admissions are expected to decrease 7.2% and adjusted admissions are expected to decrease 4.7% compared with the prior year. The previous guidance provided on Oct. 30 projected a decrease in same-store adjusted admissions of 3.5% to 4.5%.
The greater than expected deterioration in the company’s overall hospital volume during the last quarter resulted in a decline in admissions, adjusted admissions, surgeries and emergency room visits of approximately 10%, 7%, 1% and 6%, respectively, compared to the same period in 2012.
SOURCE: Community Health Systems
Published by The Business Journal, Youngstown, Ohio.
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