Major for-profit hospital operators produced mixed results in the second quarter of 2016.
1. Franklin, Tenn.-based Community Health Systems reported 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. CHS ended the second quarter with a $1.4 billion loss from continuing operations, compared with a profit of $117 million in the same quarter of 2015. During the second quarter, 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.
2. Tenet Healthcare saw revenues increase 0.6 percent year over year to $4.2 billion in the second quarter of 2016. After accounting for an increase in operating expenses and litigation reserves, the Dallas-based hospital operator ended the second quarter in the red. Tenet reported a net loss of $44 million in the second quarter, compared to a $60 million net loss in the same period of 2015
3. King of Prussia, Pa.-based Universal Health Services saw revenues jump 6.8 percent year over year to $2.4 billion in the second quarter of 2016. The financial boost was attributable, in part, to an increase in patient volume. UHS recorded net income of $185.6 million in the second quarter, up from $182.2 million in the same period of 2015.
4. LifePoint Health reported revenues of $1.6 billion in the second quarter of 2016, up 25.3 percent from $1.3 billion in the same period of the year prior. Although LifePoint saw revenue rise in the second quarter, the company said the loss of key physicians at one of its largest hospitals caused expenses to increase. The Brentwood, Tenn.-based hospital operator ended the second quarter with net income of $20.1 million, down 59.6 percent from $49.8 million in the same quarter of 2015.
5. Nashville, Tenn.-based HCA Holdings reported revenues of $10.3 billion in the second quarter of 2016, up 4.3 percent from $9.9 billion in the same period of 2015. The revenue boost was attributable, in part, to growth in same-facility admissions and emergency room visits, which increased 0.6 percent and 4.1 percent, respectively, year over year. HCA said inpatient and outpatient surgery volumes also increased in the second quarter of 2016. HCA ended the second quarter with net income of $658 million, compared to $507 million in the same quarter of the year prior.
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