CHS completes 30-hospital selling spree
Franklin, Tennessee-based Community Health Systems (CHS) has completed transactions to divest 30 hospitals this year, though the 127 hospitals it still operates aren’t performing well either, according to industry analysts.
As reported by Nashville Public Radio, the conference call for CHS’s third-quarter financial results was another rough one, with the company posting a $110 million loss. Some of that was blamed on hurricanes Harvey and Irma affecting operations at 19 CHS hospitals, costing the company roughly $40 million, but the idea of selling off more assets didn’t impress Bank of America analyst Kevin Fischbeck.
“You guys keep selling assets and paying down debt, but it seems like the organic [adjusted] growth seems to be negative,” he said on the earnings call when asking when the company can expect to be profitable again.
Along with declining revenue in the third quarter, same-facility admissions were down 14.8 percent compared to the third quarter of 2016. $33 million in impairment charges and losses related to the hospital sales also negatively impacted the financial results.
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.