Community Health Systems, based in Franklin, Tenn., recently announced that their net operating revenues for the first three months of 2013 increased despite a drop in admissions.
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According to a Community Health Systems press release, the company’s net operating revenues for the quarter ending on March 31, 2013, totaled $3.312 billion compared to $3.297 billion in 2012. Community Health Systems currently owns, leases or operates 135 hospitals in 29 states with an aggregate of approximately 20,000 licensed beds.
Additionally, the adjusted first-quarter earnings for the three months ending on March 31 was $493.8 million compared with $535.5 million for the same period in 2012, representing a 7.8 percent decrease. The adjusted EBITDA excludes discontinued operations, loss from early extinguishment of debt and net income attributable to non-controlling interests. Net cash provided by operating activities for the period was $57.2 million, compared with $187.3 million for the same period in 2012.
"Our results for the first quarter reflect the current dynamic market conditions and a more challenging operating environment for healthcare providers,” said Wayne T. Smith, president and chief executive officer of Community Health Systems, in a press release. “Our ability to adjust to these volatile conditions and realize improvement in revenues on a same-store basis reflects the strength of our operating model across all of our markets. We have also focused on managing our cost structure in line with current and expected volume trends.”
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The company’s consolidated operating results for first quarter reflect a 4.4 percent decrease in total admissions and a 3.5 percent decrease in total adjusted admissions compared with the same period in 2012.
On a same-store basis, admissions decreased 5.9 percent while adjusted admissions decreased 5.2 percent compared with the same period in 2012. Seasonality effects caused by the loss of one day from the 2012 leap year and the movement of holidays on the calendar during the three months that ended on March 31, 2013, resulted in approximately half of the decrease in adjusted admissions. On a same-store basis, net operating revenues increased 1.4 percent compared with the same period in 2012.
“As we navigate through this transformative period for our industry, we look forward to the growth opportunities ahead for Community Health Systems in 2013 as the fundamental aspects of healthcare reform begin to take shape, “ Smith said in the press release. “We believe hospitals will ultimately benefit from the insurance coverage expansion and the potential volume improvement. Further, we are well positioned for success in this new environment with a strong and diverse geographic footprint, a solid infrastructure and a proven ability to deliver sustainable results.”
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