The Brentwood, Tennessee-based hospital operator's net revenues and adjusted EBITDA both experienced year-over-year declines.
Quorum Health Corp. posted a net loss of nearly $76 million in Q3, according to its latest earnings report released Thursday afternoon.
The Brentwood, Tennessee-based hospital operator's net revenues and adjusted EBITDA both experienced year-over-year declines, falling $41 million and $21 million, respectively. The company's same-facility adjusted EBITDA totaled $30.6 million.
Quorum's cash flow from operating activities also fell during the quarter, sliding by $3 million.
The company lowered its year-end financial guidance for same-facility net operating revenues and same-facility adjusted EBITDA. Company leadership cited the "deterioration in the performance of our revenue cycle activities" and delayed results from "certain cost reduction initiatives."
"In the third quarter, we saw tangible evidence that our strategic initiatives are taking hold, with growth in both adjusted admissions and patient acuity. At the same time, we have experienced what we believe is a short-term deterioration in our revenue cycle performance, which accelerated as we approached the transition of our revenue cycle services to R1 RCM on October 1 of this year," Robert Fish, CEO of Quorum Health, said in a statement. "Primarily due to this deterioration in our revenue cycle performance, we’ve adjusted our 2019 outlook downward. The transition of our back-office functions to R1 RCM began on October 1, 2019, and we have already begun to see improvement in many aspects of our revenue cycle activities. Going forward, we remain confident that R1 RCM will have a transformative impact on our business and the communities we serve."
Quorum's earnings report was released a month after the company completed its agreement to sell a 106-bed California hospital to Halsen Healthcare.
The company's same-facility adjusted admissions rose slightly during Q3, an increase driven by the 2.5% growth in outpatient surgeries. However, the company did note that this metric was slightly offset by a nearly 6% decrease in same-facility admissions and a nearly 12% decrease in same-facility inpatient surgeries.
ADDITIONAL Quorum Q3 EARNINGS REPORT HIGHLIGHTS:
- By the end of Q3, the company reported $1.2 billion in long-term debt.
- The company recognized $6.6 million in cash closure costs after discontinuing operations at MetroSouth Medical Center in Illinois.
For complete financial information, review Quorum's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.