Franklin, Tenn.-based Community Health Systems, which operates 105 hospitals in 18 states, saw its net loss swell in the second quarter of 2019.
CHS reported operating revenues of $3.3 billion in the second quarter of this year, down from $3.6 billion in the same period of the year prior. The drop in revenue was attributable to CHS owning fewer hospitals than in the second quarter of 2018, a spokesperson told Becker's.
CHS said total admissions declined 11.5 percent year over year. However, admissions were up 2.3 percent in the second quarter of 2019 on a same-facility basis.
After factoring in operating expenses and one-time charges, CHS ended the second quarter of 2019 with a net loss attributable to stockholders of $167 million. That's compared to the second quarter of 2018, when the company recorded a net loss of $110 million.
Looking at results for the first half of 2019, CHS reported a net loss of $285 million on revenues of $6.7 billion. The company recorded a net loss of $135 million on revenues of $7.3 billion in the first two quarters of 2018.
CHS announced in late 2017 that it intends to sell a group of hospitals with combined revenue of $2 billion, and the company has made progress toward that goal this year. As of Aug. 1, CHS had completed the divestiture of nine hospitals this year. The company has three other hospitals under definitive agreement to sell.
"The company intends to continue its portfolio rationalization strategy during the remainder of 2019 and is pursuing additional interests for sale transactions, which are currently in various stages of negotiation with potential buyers," states the earnings release.
The hospital divestitures have helped CHS reduce its debt load. The company carried $13.88 billion in long-term debt when it announced its divestiture plan at the end of 2017. CHS' long-term debt totaled $13.39 billion as of June 30.
Shares of CHS closed Aug. 5 at $1.91 per share, their lowest closing price ever and down 1.5 percent from the day prior.
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