CHS profit plummets 91% in Q2

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Franklin, Tenn.-based Community Health Systems, which operates 84 hospitals in 16 states, saw revenues increase in the second quarter of this year but ended the period with lower net income. 

In financial documents released July 28, CHS said revenues and admissions were up in the three months ended June 30. Admissions increased 4.8 percent year over year and operating revenues climbed 19.4 percent. On a same-hospital basis, admissions were up 17 percent compared to the second quarter of 2020. 

"As COVID-19 cases declined during the second quarter, we experienced a solid rebound of non-COVID-19 patient volume," CHS CEO Tim Hingtgen said in an earnings release

After factoring in costs and one-time expenses, the for-profit hospital operator ended the second quarter with net income of $6 million on revenues of $3 billion. CHS reported net income of $70 million on revenues of $2.5 billion in the same period a year earlier. 

CHS received $1.2 billion in accelerated Medicare payments in April 2020, and, as of June 30, about $211 million had been recouped by CMS, repaid by CHS or assumed by buyers of hospitals the company divested.

Looking at results for the first six months of this year, CHS posted a net loss of $58 million on revenues of $6 billion, compared to net income of $87 million on revenues of $5.5 billion in the first six months of 2020. 

CHS said it has divested five hospitals this year. Though the company concluded its portfolio rationalization program at the end of last year, CHS said it continues to receive interest from potential acquirers of hospitals and may consider selling more hospitals in the future. 

CHS carried nearly $13.9 billion in long-term debt when it announced its divestiture plan at the end of 2017. The company's long-term debt totaled $11.9 billion as of June 30. 

Shares of CHS traded between $13.72 and $14.51 on July 28 and were down less than 1 percent from the day prior at market close.

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