After noting increasingly aggressive payer behavior in the third quarter of 2024, Franklin, Tenn.-based Community Health Systems officials said that payer downgrades and denials stabilized in the fourth quarter and continued into the first quarter of 2025.
President and CFO Kevin Hammons said on CHS’ April 24 earnings call that the stabilization reflects the system’s ongoing utilization management efforts and physician advisor program.
Mr. Hammons said during CHS’ October earnings call that the system was making incremental investments into its centralized financial services processes and teams, as well as its physician advisor program to “continue to advocate for the appropriate classification of care for our patients and payment for the services our health systems provide.”
He noted on the April 24 call, however, that the benefit of these efforts was erased by delays in payments under certain state supplemental programs, but added that “money is now flowing from these programs, so we believe we are on track to meet our annual cash flow guidance.”
CHS recorded a $284 million in operating income (9% margin) in the first quarter of 2025, up from $231 million (7.4% margin) during the same period in 2024.