Franklin, Tenn.-based Community Health Systems saw earnings drop significantly in the second quarter of 2016.
Here are five things to know about the for-profit hospital operator's financial results for the second quarter.
1. CHS reported operating revenues of $4.6 billion in the second quarter of 2016, down 6 percent from revenues of $4.9 billion in the same period of the year prior.
2. During the second quarter of 2016, CHS recorded a noncash impairment charge of $1.4 billion. The impairment charge resulted from a determination that CHS' hospital operations exceeded fair value. This was primarily due to a decline in the company's market capitalization and long-term debt during the three months that ended June 30. A decrease in the estimated future earnings of CHS compared to previous estimates also led to the impairment charge, CHS said.
3. CHS also reported a charge of $169 million to reduce the long-lived assets of hospitals the company is trying to sell, and a $70 million charge for certain underperforming hospitals. In May, CHS said it plans to drive down debt by selling 10 hospitals this year. The company expects those transactions to reduce its debt by about $530 million.
4. CHS saw admissions fall 9.1 percent year over year in the second quarter of 2016. When adjusted for outpatient activity, admissions were down 8.5 percent.
5. CHS ended the second quarter of 2016 with a $1.4 billion loss from continuing operations, compared with a profit of $117 million in the same period of the year prior.
More articles on healthcare finance:
Tenet posts $44M net loss in Q2, increases reserve to settle kickback allegations
Washington safety-net hospital's Medicare funding at risk
Abrupt physician departures take toll on LifePoint's bottom line