Despite fluke financial events in the first quarter of 2012, Franklin, Tenn.-based Community Health Systems still recorded a profit of $79.2 million in the first three months of 2013 — a 4.9 percent jump from last year.
Last year, as a result of the "rural floor settlement," HHS and CMS compensated 2,200 hospitals that were underpaid from the Medicare inpatient prospective payment system from 1999 to 2011. The deal added approximately $102 million of net operating revenue and $9 million of related expenses to CHS' bottom line in the first quarter of 2012, but those payments were nonrecurring.
However, in 2012, CHS also had to incur $63.4 million in penalties associated with early extinguishment of debt and almost $4 million in charges related to its former lawsuit with Dallas-based Tenet Healthcare. All told, CHS' operating income in the first quarter of this year was down slightly at $96.3 million compared with $99.3 million last year.
CHS' first-quarter revenue topped $3.31 billion, which was only a 0.4 percent increase from the first quarter of 2012. Adjusted EBITDA in the first three months of 2013 dropped 7.8 percent to $493.8 million, compared with $535.5 million in the same period in 2012.
Outpatient revenue continues to make up a greater percentage of CHS' overall operating revenue. In addition, same-hospital adjusted admissions fell 5.2 percent in the first quarter of this year, while same-hospital admissions dropped 5.9 percent.
Despite the slight uptick in profit, CHS executives lowered the guidance for the remainder of fiscal year 2013. CHS expects net operating revenue will top out at $13.6 billion, compared with $13.8 billion it predicted in February. CHS still plans to acquire three or four hospitals this year, and capital expenditures across the for-profit hospital company's 135 hospitals are expected to total $800 million to $850 million.
Last year, as a result of the "rural floor settlement," HHS and CMS compensated 2,200 hospitals that were underpaid from the Medicare inpatient prospective payment system from 1999 to 2011. The deal added approximately $102 million of net operating revenue and $9 million of related expenses to CHS' bottom line in the first quarter of 2012, but those payments were nonrecurring. However, in 2012, CHS also had to incur $63.4 million in penalties associated with early extinguishment of debt and almost $4 million in charges related to its former lawsuit with Dallas-based Tenet Healthcare. All told, CHS' operating income in the first quarter of this year was down slightly at $96.3 million compared with $99.3 million last year.
CHS' first-quarter revenue topped $3.31 billion, which was only a 0.4 percent increase from the first quarter of 2012. Adjusted EBITDA in the first three months of 2013 dropped 7.8 percent to $493.8 million, compared with $535.5 million in the same period in 2012.
Outpatient revenue continues to make up a greater percentage of CHS' overall operating revenue. In addition, same-hospital adjusted admissions fell 5.2 percent in the first quarter of this year, while same-hospital admissions dropped 5.9 percent.
Despite the slight uptick in profit, CHS executives lowered the guidance for the remainder of fiscal year 2013. CHS expects net operating revenue will top out at $13.6 billion, compared with $13.8 billion it predicted in February. CHS still plans to acquire three or four hospitals this year, and capital expenditures across the for-profit hospital company's 135 hospitals are expected to total $800 million to $850 million.
More Articles on Community Health Systems:
78 Statistics on For-Profit Hospital Operator Executive Compensation
For-Profit Hospital Stock Report: Week of April 22-26, 2013
CHS CEO Wayne Smith's 2012 Compensation Declines to $17.3M