CHS reports net $38M loss, operating margin up to almost 8%

Franklin, Tenn.-based Community Health Systems reported a net loss of $38 million in the second quarter, building on the previous quarter’s loss to total an $89 million deficit in the first half of 2023.

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Such losses compared with a $326 million loss in the second quarter of 2022 and a $327 million deficit for the first half of that year.

Operating income for the 77-hospital system totaled $246 million for the second quarter on $3.1 billion revenues, an operating margin of 7.9 percent, compared with a $119 million gain on $2.9 billion of revenues in the same period last year.

Salaries and benefits for the second quarter totaled $1.3 billion, up 3.2 percent on the same period in 2022, but totaled 42.9 percent of revenues compared with 44.1 percent last year.

The decrease in net loss was due to a number of factors including stronger patient volumes and reduced contract labor expenses, CHS said.

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