Franklin, Tenn.-based Community Health Systems posted $512 million in operating income (16.3% operating margin) in the second quarter of 2025, up from $238 million (7.6% margin) during the same period in 2024.
The health system’s second-quarter earnings come after Tim Hingtgen, CEO of CHS, shared plans to retire Sept. 30. CHS President and CFO Kevin Hammons will serve as interim CEO following Mr. Hingtgen’s retirement, with Jason Johnson, senior vice president and chief accounting officer, stepping in as interim CFO.
Here are six things to know:
1. Net operating revenue was $3.13 billion, a 0.3% decrease year over year from $3.14 billion. Revenues increased 6.5% on a same-store basis in the second quarter of 2025, admissions increased 0.3% and adjusted admissions decreased 0.7%.
2. Operating expenses in the second quarter of 2025 were $2.6 billion, down 10.3% from $2.9 billion during the second quarter of 2024.
3. “The Company continues to make good progress with its high priority strategic initiatives such as investments into growth projects and physician recruitment,” Mr. Hingtgen said in a July 23 news release. “We remain confident that the organization is on the right trajectory for the long term.”
4. Net income was $282 million in the second quarter of 2025, up significantly from a $13 million loss in the second quarter of 2024. Adjusted EBITDA was $380 million, down from $387 million during the second quarter of 2024. Long-term debt was $10.8 billion.
5. CHS has divested its ownership interest in six hospitals so far in 2025. This includes two 50%-owned hospital transactions that closed Feb. 1 and May 1, one 80%-owned hospital that closed June 30 and three completely owned facilities, two of which closed March 1 and the other April 1. CHS also signed a $195 million deal with Labcorp on July 22 to transfer leases and sell selected assets of its ambulatory outreach lab services across 13 states.
6. CHS saw $239 million in net non-cash income in the second quarter of 2025, compared to a $10 million expense over the same period in 2024. In the first half of 2025, net non-cash income totaled $263 million, versus a $27 million expense in the prior year. These gains were driven largely by hospital divestitures, partially offset by losses on minority ownership exits and asset impairments.
