Hedge fund manager predicts CHS will go bankrupt

Ayla Ellison (Twitter) - Print  | 

Firefly Value Partners Co-Founder and Portfolio Manager Ryan Heslop is bearish on Franklin, Tenn.-based Community Health Systems, according to Reuters.

Mr. Heslop, who was one of several hedge fund managers to present May 6 at the Ira Sohn Investment Conference in New York, announced a short position in CHS during the conference.

He said CHS will likely go bankrupt over the next few years due to rising debt costs and dwindling revenue per hospital bed. 

The company's "pile of debt and the declining profitability of hospitals make it almost certain that this patient will die," Mr. Heslop said, according to Reuters.

CHS didn't immediately respond to Reuters' request for comment.

During the conference, other discussions about for-profit hospital operators were positive. Glenview Capital Management Founder and CEO Larry Robbins said he's bullish on hospitals overall, and owning stock in Nashville, Tenn.-based HCA Healthcare, King of Prussia-based Universal Health Services and Dallas-based Tenet Healthcare is a wise decision, according to Barron's.

More articles on healthcare finance:

Washington health system files for bankruptcy, cites issues with revenue cycle vendor
How CHS, Tenet, HCA and UHS fared in Q1
Arkansas hospital closes: 5 things to know

 

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.