The rural hospital operator reported another round of losses and declining revenues as it sells off hospitals and works to right the ship.
Community Health Systems (CHS) struggled during Q3 as the rural hospital operator continues to divest its assets amidst widespread financial woes.
Net operating revenues fell to $3.45 billion, down 5.9% compared to Q2 2017, while CHS posted $325 million in net losses attributable to stockholders, nearly triple what the company lost this time last year.
CHS also saw losses of $2.88 per diluted share, down from losses of $0.98 per diluted share in Q2 2017, with a net loss attributable to stockholders of $1.64 per diluted share, more than double what the loss was last year.
This marks another financially distressing quarter for the company, which has sold off numerous hospitals in the past two years in an attempt to regain profitability. CHS experienced a 2.3% decrease in admissions on a same-store basis and a 0.8% decrease in adjusted admissions compared to Q3 2017, which were among the factors to their dismal quarterly performance.
"We are pleased with the progress we made in the third quarter, and we are encouraged by the momentum we are seeing from strategic and operational initiatives that have been implemented across our portfolio of hospitals," Wayne T. Smith, chairman and CEO of CHS, said in a statement. "We are especially pleased with same store performance in many of our core markets. We believe our overall performance will continue to improve as we complete additional divestitures and direct our investments into markets where we have the greatest opportunities for growth.”
CHS released its earnings report after the market closed Monday afternoon but its stock was performing well prior to the earnings report release, finishing the day up 6%. However, the stock fell about 1% during after hours trading.
ADDITIONAL CHS Q3 EARNINGS REPORT HIGHLIGHTS:
CHS has $346 million in net cash provided by operating activities, up from $114 million this time last year.
For the first nine months of 2018, CHS posted net operating revenues of $10.7 billion, down 13% year-over-year.
The adjusted EBITDA for Q3 was $372 million, up from $331 million in Q3 2017, but down from the $411 million in Q2 2018.
For complete financial information, review CHS' filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
In Q3, CHS tripled its net losses attributable to stockholders compared to what it was this time last year.
Revenues declined by nearly 6% as the company continues to fleece itself of rural hospitals across the country.
Still, CEO Wayne T. Smith said he is "encouraged by the momentum" the company's strategic initiatives are showing.