CHS posts $326M loss in Q2

Franklin, Tenn.-based Community Health Systems, which operates 83 hospitals, saw revenues decrease in the second quarter of this year and ended the period with a net loss. 

In financial documents released July 27, CHS said revenues and admissions were down in the three months ended June 30. Admissions declined 3.4 percent year over year and revenues were down 2.4 percent compared to the second quarter of 2021. 

"Our results in the second quarter were affected by challenging operating dynamics that included lower than anticipated volume, lower net revenue per adjusted admission, and significant contract labor costs driven by labor market and inflationary pressures," CHS CEO Tim Hingtgen said in an earnings release. "We have initiatives underway intended to actively address these pressures by accelerating strategic growth opportunities in key markets, aggressively working to recruit and retain permanent staff to replace contract labor, achieving incremental expense reductions, and leveraging our centralized resources to achieve improved results."

After factoring in costs and one-time expenses, the for-profit hospital operator ended the second quarter with a net loss of $326 million on revenues of $2.93 billion. CHS reported net income of $6 million on revenues of $3 billion in the same period a year earlier. 

Looking at the first six months of this year, CHS reported a net loss of $327 million on revenues of $6.04 billion. In the first half of 2021, the company posted a net loss of $58 million on revenues of $6.02 billion. 

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