The Franklin, Tennessee–based for-profit hospital operator announced several hospital divestitures ahead of the release of its earnings report.
Community Health Systems, Inc. (CHS) released its Q1 2020 earnings report Tuesday afternoon and acknowledged that the company received $245 million as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act.
In addition to the federal funding received through the $2.2 trillion CARES Act, CHS also received $1.2 billion in Q1 through the Medicare Accelerated and Advance Payment Program.
CHS stated that while the company is currently unable to assess the extent to which the additional funding will be able to offset the effects of ongoing coronavirus disease 2019 (COVID-19) outbreak, the payments ultimately "will be beneficial."
While the impact of the pandemic began to affect CHS during the last two weeks of March, the company stated that this led to decreases in net operating revenues and increases in supply chain expenses.
Related: CHS Posts $373M Net Loss in Q4, Full Year Revenues Dip 6.7%
CHS announced earlier this month that it would withdraw its full year financial guidance due to uncertainties surrounding the coronavirus crisis and reiterated that the company would not issue a new one in its latest earnings report.
C-suite perspective:
"We are all grateful for the courage and commitment of our nation’s healthcare workers as they put the care of their patients above all else in confronting COVID-19," Wayne Smith, CEO of CHS, said in a statement. "Across our hospitals, physicians, nurses, and everyone else on the front lines have helped to save lives. Our organization has leveraged its resources to provide a rapid, coordinated and effective response to the pandemic. Now, we are also focused on reopening services where we can, especially for patients who have deferred important surgeries, procedures and other appointments. As we continue to manage our operations through the COVID-19 pandemic, our organization is doing everything possible to limit the spread of COVID-19 and to ensure our communities continue to have access to safe, quality healthcare."
The Franklin, Tennessee–based for-profit hospital operator also announced several hospital divestitures ahead of the release of its earnings report.
On Monday, CHS agreed to sell two hospitals in Texas to Hendrick Health System and one hospital in Florida to Orlando Health.
All three hospital sales are among the planned divestitures that CHS announced during its Q4 2019 earnings call.
Just last week, CHS agreed to sell another Texas hospital, San Angelo Community Medical Center, to Shannon Health System.
Related: CHS to Sell Texas Hospital to Shannon Health System
The most recent transactions came less than three weeks after CHS executives donated $1.5 million to CHS Cares Fund, an employee charity fund.
Related: Community Health System Executives Donate $1.5M to Employee Charity During Pandemic
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.