CHS records $112M profit, says it will sell 4 more hospitals by year-end

Franklin, Tenn.-based Community Health Systems saw its revenue decline in the third quarter of 2020, but ended the period with a $112 million profit, according to financial documents released Oct. 27. This compares to a net loss of $17 million in the third quarter of 2019. 

In the three-month period ended Sept. 30, CHS saw its net revenue decline 3.7 percent to $3.1 billion, compared to the third quarter of 2019. The decline was largely attributed to a dip in patient volume amid the COVID-19 pandemic. CHS said on a same-facility basis, admissions were down 6.1 percent compared to the same period in 2019. 

The company saw its expenses decline year over year, from $3.1 billion in the second quarter of 2019 to $2.8 billion in the second quarter of 2020.

CHS ended the third quarter with operating income of $285 million, up from $184 million recorded in the same period last year. 

Although the hospital operator received pandemic relief funds in previous quarters,  CHS said no pandemic relief funds were recognized during the three months ended Sept. 30.

CHS said its third-quarter results reflect progress on various strategic initiatives implemented at the health system, including its hospital divestiture plan. So far in 2020, CHS has sold 12 hospitals and shut down one facility. 

CHS said it plans to sell four more hospitals by the end of the year. 

“Our results in the third quarter reflect strong progress on strategic activities taking place across the organization and the ability of our markets to effectively meet the challenge of a global pandemic,” said Wayne Smith, CHS chairman and CEO. “While we have directed our attention and resources to managing through the pandemic, we have also remained focused on the completion of our divestiture work, investments to support growth in our markets and margin improvement programs. These strategic activities continue to generate positive results, and we remain optimistic about our opportunities for even more progress moving forward.”

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