The Brentwood, Tennessee-based hospital operator saw operating drops in net operating revenue and adjusted EBITDA.
Quorum Health Corporation reported net operating revenues of $442.2 million in Q2, a net loss of $16.9 million, and down $30 million year-over-year, with adjusted EBITDA falling by $2.9 million, according to an earnings report released Wednesday afternoon.
Among other key financial metrics, Quorum posted a $10.4 million loss in cash flows from operating activities, one year after recording negative cash flows of $17.2 million, and slashing its quarterly net loss from $99 million to $39 million. EBITDA fell to $36.9 million, compared to $40.2 million in Q2 2018.
Related: Quorum Health Finishes Q1 With Mixed Results
The Brentwood, Tennessee-based hospital operator saw a $16 million drop in same-facility year-over-year net operating revenues, down to $442.4 million for Q2.
In other notable metrics:
- Compared to Q2 2018, same-facility net patient revenues decreased 2.6%, while same-facility net patient revenues per adjusted admission increased 0.9%.
The decrease in same-facility net patient revenues compared to Q2 2018 reflects a 3.4% decline in same-facility adjusted admissions and a 2.2% decline in same-facility surgeries. The decline in volumes compared to Q2 2018 represents approximately $14.9 million of same-facility net patient revenues.
- Same-facility net operating revenues for Q2 reflect a $5.6 million decrease related to the pending divestitures of Watsonville Community Hospital and MetroSouth Medical Center.
In June, Quorum announced plans to sell Watsonville by the end of Q3, a deal which is expected to provide Quorum with $35 million to $40 million.
- Q2 2019 Adjusted EBITDA was 7.6% of net operating revenues and Same-facility Adjusted EBITDA was 8.3% of same-facility net operating revenues.
- Same-facility surgeries in Q2 improved 8.9% compared to the first quarter of 2019, which Quorum credited to improved volumes at two facilities that brought in new physicians and re-syndicating two outpatient surgery centers in Illinois.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
Quorum posted a $10.4 million loss in cash flows from operating activities, one year after recording negative cash flows of $17.2 million.
EBITA fell to $36.9 million, compared to $40.2 million in Q2 2018.
Compared to Q2 2018, same-facility net patient revenues decreased 2.6%, while same-facility net patient revenues per adjusted admission increased 0.9%.