Franklin, Tenn.-based Community Health Systems reported a $91 million net loss in the third quarter of 2023, down from a net loss of $42 million over the same period last year. Among the financial challenges CHS officials pointed to was unfavorable changes in payer mix.
CFO Kevin Hammons said on the for-profit system's Oct. 26 earnings call that on the Medicare side they are seeing a continued shift out of fee-for-service into Medicare Advantage, "and that always continues to pressure the revenue, because we collect less on MA compared to traditional fee-for-service."
Here is a look at CHS' payer mix by net patient revenues for the quarter ended Sept. 30 compared to the same period last year:
Q3 2023:
Commercial: $1.5 billion (47.9%)
Medicare: $608 million (19.7%)
Medicare Advantage: $498 million (16.1%)
Medicaid: $456 million (14.8%)
Self-pay: $45 million (1.5%)
Q3 2022:
Commercial: $1.4 billion (47.8%)
Medicare: $644 million (21.3%)
Medicare Advantage: $479 million (15.8%)
Medicaid: $449 million (14.9%)
Self-pay: $7 million (0.2%)
Here is a look at CHS' payer mix by net patient revenues for the nine months ended Sept. 30:
2023:
Commercial: $4.4 billion (47.7%)
Medicare: $1.9 billion (20.2%)
Medicare Advantage: $1.6 billion (16.8%)
Medicaid: $1.3 billion (14.3%)
Self-pay: $92 million (1%)
2022:
Commercial: $4.2 billion (46.9%)
Medicare: $1.9 billion (21.3%)
Medicare Advantage: $1.5 billion (16.2%)
Medicaid: $1.4 billion (15%)
Self-pay: $60 million (0.6%)