The Franklin, Tennessee–based for-profit hospital operator sustained financial significant damage related to the pandemic but also benefited from CARES Act payments as well.
Reflecting the impact of the coronavirus disease 2019 (COVID-19) pandemic, consolidated admissions and net operating revenues both fell more than 23% for Community Health Systems, Inc. (CHS) during Q2 2020, according to the company's latest earnings report released Tuesday afternoon.
During Q2, CHS' admissions fell 23.6%, adjusted admissions dropped 29.2%, and net operating revenues slid 23.7%.
Despite the financial declines, CHS did report a net income of $70 million, a 141.9% increase year-over-year, along with an adjusted EBITDA of $454 million, up nearly 13% over the same period.
Similarly, the company's net cash provided by operating activities exceeded $1.6 billion, a 1,151.5% year-over-year increase. However, it is important to note that the company acknowledged in its Q1 earnings report that it 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 withdrew its full year financial guidance in its Q1 report due to uncertainties surrounding the coronavirus crisis and did not issue a new guidance in its Q2 report.
"The COVID-19 pandemic continues to be an unprecedented public health crisis that has forever changed our country and the healthcare industry. Our response to this crisis is guided by our most important priority - to provide safe, quality healthcare for the patients who put their trust in us. We are forever grateful to our incredible physicians, nurses and other caregivers who bravely step up and step forward every day to care for their patients, communities and each other. And, we thank all of America’s healthcare workers for their compassionate, professional, and truly heroic actions in this pandemic," Wayne Smith, CEO of CHS, said in a statement. "I am proud of our hospital leadership teams and the corporate support teams that have demonstrated agility and resilience under pressure and leveraged all of the resources of our organization to support their community response as well as one another. We will continue to adapt to this evolving situation with a steadfast commitment to provide the best possible response to this public health crisis, while at the same time focusing on long-term growth for all of the Company’s stakeholders."
About one month before releasing its earnings report, the Franklin, Tennessee–based for-profit hospital operator announced the sale of its 480-bed Bayfront Health St. Petersburg to Orlando Health. The deal is expected to close by September 30.
Year-over-year, CHS divested 10 hospitals, owning a total of 97 at the end of Q2.
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.