Community Health Network reports $40M operating loss, cuts 80 jobs

Indianapolis-based Community Health Network saw revenues decline in the first six months of this year and ended the period with an operating loss, according to recently released financial documents

The health system reported revenues of $1.2 billion in the six months ended June 30, down from $1.3 billion in the same period a year earlier. The revenue decline was attributed to lower patient volumes due to the COVID-19 pandemic. The health system also said it incurred more than $35 million in COVID-19-releated expenses through June 30. 

Community Health Network ended the first two quarters of this year with an operating loss of $39.7 million, compared to operating income of $74.4 million in the same period last year. 

The health system implemented several cost reduction initiatives to help reduce financial strain. As of June 30, the health system cut 80 jobs, eliminated the match component of its 401(k) plan from Aug. 1 through Dec. 31, announced plans to close its inpatient rehabilitation hospital in Kokomo, Ind., and consolidated revenue cycle and other information systems to eliminate $61.6 million in costs. 

The health system also received approximately $94.6 million in federal grants made available under the Coronavirus Aid, Relief and Economic Security Act in the second quarter of this year. 

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