The for-profit rural hospital operator produced yet another dismal earnings report.
Community Health Systems (CHS) recorded a net loss of $118 million attributable to shareholders, which is less than the previous two quarters but also marked a nearly $100 million decline compared to Q1 2018, according to the company's earnings report released Tuesday afternoon.
CHS's net operating revenues reached $3.37 billion, decreasing by 8.5% year-over-year, as its adjusted EBITDA dropped $49 million over the same period of time.
Q1 marked yet another quarter of divestiture activity for the Franklin, Tennessee-based for-profit hospital operator as it announced the sale of Tennova Healthcare - Lebanon to Vanderbilt University Medical Center in late March.
“We continued to see incremental improvements in same-store net revenue and volume across our key markets in the first quarter of 2019, as well as a strengthening of our overall portfolio as additional divestitures have occurred," Wayne T. Smith, chairman and CEO of CHS, said in a statement. "We believe our recent investments, including physician recruitment, employment and alignment strategies, and the development of new access points, will drive continued improvement in our performance moving forward. We remain focused on all aspects of operational excellence, with a high priority on the efficient use of our resources, diligent efforts to continuously improve processes and results, and consistent execution of our growth initiatives. Finally, we remain committed to continuing to provide high-quality, safe care across our continuum of services."
In a small positive, CHS recorded $133 million in net cash provided by operating activities, $27 million more than in Q1 2018.
However, its net loss per share deteriorated from $0.22 in Q1 2018 to $1.04 in Q1.
Total admissions fell by 13.4% during the quarter and total adjusted admissions fell by 12.8% over the same period of time.
ADDITIONAL CHS Q1 EARNINGS REPORT HIGHLIGHTS:
- As a result of reducing its hospital ownership, CHS' licensed bed count at the end of Q1 is 17,000 beds, down from just over 18,200 in Q4 2018.
- On a same-store basis net operating revenues did increase 3.1% year-over-year.
- The provider's net cash used in financing activities fell from a loss of $68 million in Q1 2018 to $71 million in Q1.
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.
The company's net loss worsened by nearly $100 million year-over-year.
Net operating revenues also totalled $3.37 billion, down 8.5% compared to this time last year.
CEO Wayne Smith said CHS continues to see "incremental improvements."