Indianapolis-based Community Health Network reported a $108.5 million operating loss (-4.1% margin) for the nine months ending Sept. 30, down from a $12.6 million operating gain (0.5% margin) during the same nine-month period in 2023.
Five things to know:
1. The drop in operating performance is largely attributed to a $145.7 million settlement CHN paid to the Justice Department to resolve false claims allegations. The complaint was filed by the health system's former CFO Thomas Fischer under the whistleblower provisions of the False Claims Act.
2. Excluding the $145.7 million settlement, CHN's operating margin was $37.1 million (1.4%)for the nine months ending Sept. 30, 2024. The increase in operating margin was driven by increases in both inpatient and outpatient volumes at most of the system's hospitals as well as other service locations.
3. CHN's revenue increased 6.8% year over year to $2.65 billion Expenses grew by 11.8% to $2.76 billion, driven by increases in most expense categories with the largest being labor and supply costs, according to financial documents filed Dec. 31.
4. Days of cash on hand was 215 days at Sept. 30, 2024, compared to 194 days at Dec. 31, 2023. As of Sept. 30, long-term debt stood at $859.8 million.
5. After accounting for nonoperating items, such as investment returns, CHN reported a net income of $50.4 million for the nine months ending Sept. 30, compared to $71.1 million for the same period in 2023.