Franklin, Tenn.-based Community Health Systems saw $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.
Six things to know:
1. Net operating revenue was $3.2 billion, a 0.6% year over year increase from $3.1 billion. Revenues increased 3.1% on a same-store basis over the first quarter of 2024, admissions increased 4% and adjusted admissions spiked 2.6%.
2. First quarter operating expenses decreased 1.2% year over year to $2.9 billion.
3. Adjusted EBITDA was $376 million, down from $378 million during the first quarter of 2024. Net loss attributable to shareholders was $13 million, down from $41 million in the first quarter of 2024.
4. “Demand for our services produced solid growth in same-store admissions and adjusted admissions in the first quarter as momentum from the end of last year carried over into 2025,” Tim Hingtgen, CEO of CHS, said in an April 23 news release. “In addition, we generated significant proceeds from divestitures and announced a pending divestiture in April that will enable the Company to further reduce debt. Even though healthcare providers are navigating significant change as our operating environment continues to evolve, we remain confident that our strategies are strengthening our operations and positioning the Company for long-term success.”
5. After accounting for nonoperating items, primarily $219 million in interest expenses, CHS ended the first quarter of 2025 with a $13 million net loss, up from a $41 million loss during the same period in 2024.
6. In April, CHS divested its 80% ownership interest in Cedar Park (Texas) Medical Center for $460 million to St. Louis -based Ascension. The health system also shared plans in February to offload two Florida and one North Carolina hospital for around $540 million in gross proceeds.
