Community Health Systems continues to benefit from HMA acquisition, posts Q1 profit

Franklin, Tenn.-based Community Health Systems posted a profit of $79 million for the first quarter of fiscal 2015, compared with a $112 million net loss a year ago.

The for-profit hospital operator's net operating revenue jumped 17.6 percent in this year's first quarter to $4.91 billion, with the financial boost being primarily attributable to CHS' acquisition of Naples, Fla.-based Health Management Associates in January 2014 and seeing fewer uninsured patients.

Including HMA hospitals, total admissions at CHS facilities were up 15.7 percent in the first quarter, and when adjusted for outpatient activity, admissions increased 17 percent compared to the same period of the year prior. On a same-hospital basis, admissions increased 0.4 percent while adjusted admissions increased 2.5 percent during the first quarter compared to the same period of last year.

The hospital operator posted income from continuing operations of $92 million, up from a $90 million loss for the same period of 2014.

"We are pleased with our financial and operating performance for the first quarter of 2015," said Wayne T. Smith, chairman and CEO of CHS. "We are especially encouraged by improved volume in the quarter, demonstrating the results of our strategic growth initiatives and the incremental benefits of the Affordable Care Act. We remain optimistic these positive trends will continue as a result of growth in exchange enrollment."

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