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CHS Posts $35M Net Loss

Analysis  |  By Jack O'Brien  
   April 28, 2021

On a same-store basis, CHS' admissions fell almost 5% year-over-year, while adjusted admissions declined 7.2%.

Community Health Systems, Inc. (CHS) posted a net loss of $35 million in Q1 2021, according to the company's latest earnings report released Wednesday afternoon.

While the company's EBITDA rose to nearly $500 million, CHS dealt with declining admissions, which hampered revenues.

On a same-store basis, CHS' admissions fell almost 5% year-over-year, while adjusted admissions declined 7.2%.

The company's net operating revenues were nearly flat year-over-year at $3.01 billion.

Related: CHS' Declining Patient Volumes Due to COVID Decreased Net Operating Revenues

CHS did see its income from operations rise from $110 million in Q1 2020 to $326 million in Q1 2021.

C-suite perspective:

"Our strong operational and financial performance in the first quarter of 2021 reflects our ability to manage through the challenges of the COVID pandemic while also advancing strategic initiatives that strengthen our organization and produce real-time, positive results," Tim L. Hingtgen, CEO of CHS, said in a statement. "Our market leadership teams continue to adjust their operating models as COVID cases fluctuate, by managing shifts in volumes, revenue, and expenses to achieve the best possible results. At the same time, we are making targeted capital investments and leveraging enterprise-wide programs to ensure our services are both accessible to consumers and facilitate growth over time. As always, we are grateful for our front-line clinicians and other caregivers who continue to provide safe, quality, compassionate care in the most extraordinary of circumstances."

At the end of Q1 2021, CHS had 85 hospitals in its portfolio.

CHS reported $1.25 billion in cash and cash equivalents at the end of the quarter, marking a decrease of $425 million from the end of Q4 2020. 

Forward-looking, CHS is projecting its net cash provided by operating activities will be in the range of $200 million to $300 million, with repayment of Medicare accelerated payments in the range of $400 million to $500 million.

For complete financial information, review CHS' filing with the Securities and Exchange Commission.

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.

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