CHS says contract labor costs down 50% in Q2

Franklin, Tenn.-based Community Health Systems, which reported $1.3 billion in salaries and benefits expenses in the second quarter, saw contract labor costs of $74 million during the period.

That figure compared with approximately $150 million in the same period last year, CFO Kevin Hammons said on a results call Aug. 3. The decline is consistent with a target of contract labor costs totaling approximately $60 million by the end of the year, he added.

That said, while there are improved numbers and a 5.3 percent increase in nurse recruitment year on year, contract labor costs are "unlikely anytime soon" to reach pre-pandemic levels of about $30 million per quarter, Mr. Hammons said.

The $1.3 billion overall salary and benefits expense was up 3.2 percent on the same period in 2022 but totaled 42.9 percent of revenues compared with 44.1 percent last year.

CHS, a 77-hospital system, reported a net loss for the period of $38 million.

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