Franklin, Tenn.-based Community Health Systems reported an operating income of $243 million (7.9% margin) in the third quarter, a significant improvement on the $205 million operating loss (-6.6% margin) in the same quarter last year.
After accounting for taxes, interest and other adjustments, CHS reported a net income of $130 million (4.2% margin) in the third quarter, compared to a net loss of $391 million (-12.7% margin) in the same period in 2024. Net income for the nine months ending Sept. 30, 2025, was $399 million (4.3% margin), up from a $446 million net loss (-4.8% margin) over the prior year period.
“We were pleased with operating and financial results for the quarter, which generally met our expectations,” CHS President and Interim CEO Kevin Hammons said in an Oct. 23 news release. “The refinancing that we completed in August, along with completed and pending divestitures, provides additional runway and liquidity to continue executing on our strategic initiatives and further deleverage.”
Seven things to know:
1. Net operating revenues totaled $3.087 billion in the third quarter, nearly flat compared to $3.090 billion in the same period of 2024. On a same-store basis, revenues grew 6%.
2. Same-store admissions increased 1.3% year over year, while same-store adjusted admissions increased 0.3%. Total admissions and adjusted admissions, including divestitures, declined 6.6% and 7.7%, respectively.
3. Adjusted EBITDA was $376 million, up from $347 million in the third quarter of 2024. CHS attributed the increase to a $28 million legal settlement, higher reimbursement rates, favorable changes in payer mix and more supplemental reimbursement program revenue, partially offset by lower patient acuity.
4. Long-term debt was $10.6 billion, down from $11.4 billion a year earlier. Total assets were $13.2 billion, down from $14.1 billion.
5. In August, CHS refinanced $1.7 billion in senior secured notes due 2027 by issuing $1.8 billion in new notes due 2034. The transaction generated a $33 million pre-tax loss on early debt extinguishment.
6. CHS has divested ownership in seven hospitals this year — with plans to sell three more — as well as entering into a $195 million agreement with Labcorp to sell outpatient lab assets across 13 states. In October, the system also received $91 million in additional cash related to a prior hospital sale, expected to be recognized in the fourth quarter.
7. CHS owns or leases 70 hospitals with more than 10,000 beds and operates more than 1,000 care sites across 14 states.
