Franklin, Tenn.-based Community Health Systems previewed its financial and operating results for the third quarter of 2016 on Wednesday.
Here are five things to know about the company's third-quarter results, which are based on information available to CHS management as of Oct. 26.
1. CHS expects to record net operating revenues of about $4.4 billion for the three months ended Sept. 30. That's down 9.6 percent from operating revenues of $4.8 billion in the same period of 2015.
2. The company expects to post an $83 million operating loss in the third quarter of 2016, compared with an operating income of $121 million for the same period of 2015.
3. CHS attributed the lower than expected results to a number of factors, including lower than anticipated volumes and reductions to reimbursement from state supplemental programs. The company said failure to hold down expenses also negatively affected its third-quarter results.
4. CHS said the consolidated operating results for the third quarter of this year reflect a 12.4 percent year-over-year decline in total admissions. On a same-hospital basis, admissions fell 2.1 percent year over year.
5. CHS is currently exploring options with financial sponsors. Private equity firm Apollo Global Management is reportedly in discussions to acquire CHS' assets.
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