Profit at Community Health Systems took a nosedive in the most recent third quarter, as the Franklin, Tenn.-based for-profit hospital chain recorded net income of $44.2 million — a 40.5 percent drop from the $74.3 million posted in the third quarter of 2011.
CHS attributed the large drop to a $52 million loss from the early extinguishment of debt and higher operating costs and expenses. Total operating costs and expenses increased 9.9 percent year-over-year. If the early retirement of debt were excluded, CHS would have earned $0.86 per share in the third quarter compared with the actual $0.49 per share. Consequently, CHS executives cut its full-year profit outlook.
CHS' third-quarter net operating revenue, however, jumped 9 percent, from $2.95 billion last year to $3.21 billion this year. Adjusted EBITDA also improved in the third quarter, from $453.5 million last year to $477.3 million this year — a 5.2 percent increase.
For the first nine months of fiscal year 2012, CHS reported a profit of $203.1 million, which is an 18.7 percent increase from the first nine months of 2011. This year's second quarter posting of $83.4 million in profit helped that total. Net operating revenue in the first nine months rose 9.6 percent, from $8.9 billion to $9.75 billion.
CHS' same-hospital admissions in the third quarter fell 0.3 percent, but adjusted admissions rose 0.8 percent. In the third quarter, CHS added five hospitals to its rolls, meaning it now operates 135 hospitals.
CHS attributed the large drop to a $52 million loss from the early extinguishment of debt and higher operating costs and expenses. Total operating costs and expenses increased 9.9 percent year-over-year. If the early retirement of debt were excluded, CHS would have earned $0.86 per share in the third quarter compared with the actual $0.49 per share. Consequently, CHS executives cut its full-year profit outlook.CHS' third-quarter net operating revenue, however, jumped 9 percent, from $2.95 billion last year to $3.21 billion this year. Adjusted EBITDA also improved in the third quarter, from $453.5 million last year to $477.3 million this year — a 5.2 percent increase.
For the first nine months of fiscal year 2012, CHS reported a profit of $203.1 million, which is an 18.7 percent increase from the first nine months of 2011. This year's second quarter posting of $83.4 million in profit helped that total. Net operating revenue in the first nine months rose 9.6 percent, from $8.9 billion to $9.75 billion.
CHS' same-hospital admissions in the third quarter fell 0.3 percent, but adjusted admissions rose 0.8 percent. In the third quarter, CHS added five hospitals to its rolls, meaning it now operates 135 hospitals.
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