- Community Health Systems saw a nearly 6% drop in operating revenue to $3.25 billion for the third quarter of this year, beating analyst estimates, according to an earnings announcement, but the chain cut its 2019 guidance sending shares down 15% on Wednesday.
- The Franklin, Tennessee-based chain announced the sale of three facilities this week, marking its exit from Virginia. That's on top of 12 already completed divestitures so far this year.
- Same-store admissions increased 2.4% and adjusted admissions were up 3.6% from the prior-year period.
The struggling hospital chain needs to show it can translate its admissions growth into improved earnings and cash flows, Jefferies analyst Brian Tanquilut told Healthcare Dive. The volume strength "is really a positive surprise, but at the same time, it does not translate necessarily into good earnings performance."
The company posted a $17 million loss for the quarter compared to a $325 million loss in the same period last year. The earnings per share loss of 15 cents handily beat Wall Street expectations. It did not beat, however, on EBITDA.
Ahead of a late morning investor call, CHS CEO Wayne Smith touted admissions as a key metric. "Continued execution of our transfer program, Accountable Care Organizations, capital investments, and strategic plans have driven these improved results. We believe these investments, along with recent divestitures and ongoing operating efficiency initiatives, have positioned the Company for continued improved performance," he said in a release.
For-profit chain HCA also reported volume growth for the third quarter in its earnings results this week, while Universal Health Services posted mixed results but also an admissions uptick. Tenet Healthcare is set to release its numbers Monday.
Bon Secours Mercy Health is buying the three Virginia hospitals: 300-bed Southside Regional Medical Center, 105-bed Southampton Memorial Hospital and 80-bed Southern Virginia Regional Medical Center. Terms were not disclosed.