CHS' annual net income drops 39%

Franklin, Tenn.-based Community Health Systems posted a net income of $368 million in 2021, a 39.3 percent decrease from the $607 million recorded in 2020, according to its financial results released Feb. 16

The health system — which has 83 hospitals in 16 states — reported an operating revenue of $12.4 billion for the 12 months ended Dec. 31, 2021, up 4.9 percent from 2020 when operating revenue was $11.8 billion. 

CHS' operating expenses increased slightly in 2021 to almost $11 billion, which is a 2.8 percent increase from 2020 when expenses totaled $10.7 billion. Salaries and benefits were the biggest expense at $5.2 billion in 2021, a 3.1 percent decrease from 2020.

The system's operating income rose by 24.5 percent to $1.4 billion in 2021. In 2020, the health system's operating income was $1.1 billion.

CHS lost $39 million from the sale of equity interests in Macon (Mo.) Healthcare in 2021, according to the financial report.

For the three months ended Dec. 31, 2021, CHS reported a 36.6 percent lower net income at $223 million, compared to $352 million in the same period in 2020.

CHS posted a net revenue of $3.2 billion in the fourth quarter of 2021, up from the $3.1 billion recorded in the same period in 2020. Its operating expenses increased by 4.7 percent year over year in the fourth quarter, from $2.7 billion in 2020 to $2.8 billion in 2021.

The system saw a slightly lower operating income for the fourth quarter of 2021 at $424 million, compared to $435 million in the same period of 2020.

"The company delivered a solid year, with positive trends across a number of indicators, due to the successful advancement of multiple strategic and operational initiatives," CHS CEO Tim Hingtgen said in the report. "During the fourth quarter, our healthcare providers and hospital leadership teams in our affiliated markets continued to provide essential COVID and non-COVID care. We remain incredibly grateful for their continued dedication throughout the course of the pandemic. As we move forward, we expect the company's focused investments and operational initiatives to drive incremental growth and drive value for all stakeholders."

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