- Community Health Systems posted profit and revenue in the third quarter that barely changed from the same time last year, bringing in a net income of $111 million on revenue of $3.1 billion, according to financial documents out Wednesday.
- The Franklin, Tennessee-based hospital operator beat Wall Street expectations on earnings and revenue, and Jefferies analysts pointed to improving admission trends.
- CHS submitted a combined application for the fourth phase of the Provider Relief Fund and additional money set aside for rural providers, though no funds have been received as of Wednesday, according to the release.
CHS is the final for-profit hospital operator to report its third-quarter earnings, and similar to its peers, it "experienced the largest number of COVID-19 cases to date," CEO Tim Hingtgen said in a release.
Unlike other companies, though, CHS' expenses actually slid slightly during the period, to $2.78 billion compared to $2.84 billion last year.
Labor costs are a sticking point this earnings season, with other chains like HCA and Universal Health Services reporting they spent more on overtime, temporary travel nurses and sign-on bonuses to recruit and retain needed staff during the period.
While investors worried about the impact of the delta surge and temporary labor and staffing concerns, "the company put up strong results that underscore continued improvement in its admission trends, as well as gains with its margin enhancement initiatives that offset labor/temp staffing headwinds," Jefferies analysts wrote in a Thursday note.
Admissions rose 2.8% on a same-store basis and adjusted admissions rose 4.7% compared to the same period last year.
CHS' volumes rose slightly in Q3, while its same-store basis net operating revenues increased 7.1% compared to the same period in 2020.
The chain also sold its unconsolidated minority equity interests in Macon Healthcare, a two-hospital joint venture with subsidiaries of HCA Healthcare, receiving $110 million in cash and recognizing a pre-tax gain of about $26 million in the quarter.
CHS has benefited from pandemic relief legislation, and said it has received about $709 million in payments through the Paycheck Protection Program and Health Care Enhancement Act and various state and local programs since their enactment.
It recognized about $19 million to be claimed as a reduction in operating costs and expenses during the quarter, according to the release.