CHS' 4Q Profit More Than Doubles to $62.6M
In the fourth quarter of 2012, Franklin, Tenn.-based Community Health Systems reported profit of $62.6 million — more than double its $30.9 million profit from the same period in 2011.
In the fourth quarter of fiscal year 2011, CHS' net income plummeted 55.5 percent to $30.9 million, due in large part to a $42 million after-tax charge from extinguishing debt early.
This past year, and especially the most recent quarter, resulted in large growth for CHS. Net operating revenue in the fourth quarter soared more than 9 percent, from $3 billion in 2011 to $3.28 billion in 2012. CHS also tallied more than $53 million in electronic health record incentive payments from the federal government.
For the entire 2012 fiscal year, CHS' profit climbed 31.5 percent to $265.6 million, compared with $201.9 million in FY 2011. CHS set a record in net operating revenue in FY 2012, as it topped $13 billion — a 9.4 percent increase from $11.9 billion of revenue in FY 2011. CHS posted adjusted EBITDA of $1.98 billion for the year ended Dec. 31, 2012, and the for-profit hospital operator also had more than $387.8 million in cash and cash equivalents at the end of the year.
Much of CHS' growth in FY 2012 was due to higher outpatient volumes and stable inpatient revenue. In FY 2012, CHS same-hospital adjusted admissions rose 1.5 percent. Outpatient revenue represented 53.9 percent of CHS' total revenue in 2012, up from 51.9 percent last year, while inpatient revenue dropped almost 2 percent to 44.2 percent of all revenue.
"Community Health Systems has continued to demonstrate success in a dynamic and challenging healthcare environment," Wayne Smith, CHS chairman, president and CEO, said in a news release. "Our results for 2012 confirm the strength of our operating model and our proven ability to execute our strategy to drive efficiencies in our hospitals, recruit and retain qualified physicians, make selective acquisitions and deliver high-quality healthcare services in a cost-effective manner."
Currently, CHS owns, leases or operates 135 acute-care hospitals across 29 states. CHS acquired four hospitals in 2012, and it expects to acquire three or four more hospitals in 2013.
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