Dive Brief:
- Franklin, Tenn.-based hospital giant Community Health Systems is expecting crummy FY 2013 results, including lower revenue, profits and admissions, it said in a results discussion yesterday.
- The for-profit hospital chain expects full-year adjusted EBIDTA to come in somewhere between $1.83 billion and $1.85 billion, at least 6.5% lower than 2012's adjusted EBITDA of $1.98 billion.
- In its predictions, CHS didn't factor in expenses related to its pending acquisition of Naples, Fla.-based Health Management Associates, nor did it include the $98 million reserve set aside to cover a settlement with the Department of Justice.
Dive Insight:
With CHS's performance stumbling on so many levels during FY 2013, what I want to know is, what will the hospital company do to stabilize and begin growing again in FY 2014? Yes, yes, CHS will bulk up considerably if its planned merger with Health Management Associates closes as expected, but that doesn't tell us anything about strategies for, say, accelerating admissions or improving profits. If I were a Wall Street investor, I wouldn't be so impressed with the potential for the Health Management Associates deal in and of itself. Hey, CHS, what are your turnaround plans?