Franklin, Tenn.-based Community Health Systems reported a $957 million in operating income (7.7% margin) in 2023, improving on the $821 million gain (6.7% margin) posted in 2022.
"Operational and financial results improved in 2023 as patient demand for our services increased, resulting in growth in same-store admissions, adjusted admissions, surgeries and ER visits," CEO Tim Hingtgen said in a Feb. 20 news release. "Our staff recruitment and retention initiatives generated solid gains in the number of bedside nurses and other patient care positions in our hospitals, which significantly reduced contract labor utilization."
Six things to know:
1. Revenue increased 2.3% year over year to $12.5 billion in 2023. On a same-store basis, net operating revenues increased 4.8%, admissions increased 3.5% and adjusted admissions increased 5.3% over 2022.
2. Expenses increased 1.3% to $11.5 billion in 2023, including a 1.6% rise in labor costs to $5.4 billion and a 0.9% increase in supply costs to $1.9 billion.
3. Net income for the year hit $16 million, down from $179 million in 2022.
4. CHS completed the sale of eight hospitals last year as well as the sale of a majority interest in one other hospital.
5. Adjusted EBITDA was $1.45 billion compared to $1.47 billion in 2022. Pandemic relief funds did not materially impact adjusted EBITDA in 2023, but had a positive impact of about $173 million in 2022.
6. The 71-hospital, for-profit system said it experienced growth that is directly attributable to its investments in facility expansions, physician recruitment and service line development. "We expect this progress and momentum to continue in 2024," Mr. Hingten said.