Financial Data and Key Metrics Changes - Net operating revenues for Q3 2024 were $3.09 billion, slightly up year-over-year on a consolidated basis, with same-store net revenue increasing by 5.1% [12][20] - Adjusted EBITDA for the quarter was $347 million, down from $360 million in the prior year period, with a margin of 11.2%, down from 11.7% [13][20] - Cash flows from operations improved to $67 million compared to $29 million in the year-ago period, primarily reflecting improved cash flow from changes in working capital [20] Business Line Data and Key Metrics Changes - Same-store admissions increased by 2.4% and adjusted admissions rose by 2.6% year-over-year, with surgeries up by 3.1% [6][11] - The service line mix was less favorable than expected, with an overall case mix index down 60 basis points from the prior year, reflecting declines in both surgical mix and surgical CMI [12][13] - Medical specialist fees increased by $15 million or approximately 10% from the prior year period, with notable pressure in anesthesia [15] Market Data and Key Metrics Changes - The company experienced a significant increase in denials and downgrades by insurers, with more than half of the incidents coming from the Medicare Advantage book [13][14] - The company noted a slowdown in the adjudication process for claims, impacting cash collections and overall revenue [28][36] Company Strategy and Development Direction - The company is focused on strategic growth plans, including capital investments in expanding facilities and outpatient access points, with a nearly $200 million campus expansion in Baldwin County, Alabama [8][9] - The company is also enhancing its centralized patient financial services processes and physician advisor program to combat increasing denial activity by payers [7][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of hurricanes on operations, particularly in Florida and Tennessee, and expressed optimism about recovery and growth opportunities in the fourth quarter and beyond [4][8] - The company anticipates normal seasonality improvements in Q4 and expects to continue growing volumes and earnings through strategic investments [8][48] Other Important Information - The company has a divestiture plan of $1 billion, with expectations to complete most transactions in Q4 2024 and Q1 2025 [21][22] - The company is implementing a new ERP system, which is expected to enhance operational efficiency and data standardization [22] Q&A Session Summary Question: Clarification on DPP and EBITDA guidance - The estimated EBITDA benefit from New Mexico and Tennessee is $100 million to $120 million annually, net of provider taxes, and not included in the 2024 guidance [25][26] Question: Impact of hurricane on EBITDA guidance - Approximately $18 million of the $40 million change in EBITDA guidance is attributed to hurricane impacts, with the remainder related to operational disruptions and denials [31][32] Question: Denial claims headwind - Denials have ramped up throughout the quarter, with a significant portion related to Medicare Advantage plans, and the company has been successful in reversing about 25% of denied claims [36][38] Question: Future outlook on acuity and revenue per admission - The company expects to recover from the hurricane impacts and anticipates improvements in acuity, which will positively affect revenue per admission [44][52] Question: Exchange business and Medicaid volume - The exchange business accounts for about 7% of admits, with a recent increase in exchange volume as Medicaid volumes decline [59]

Financial Performance - Net operating revenues increased from $3.086 billion for the three months ended September 30, 2023, to $3.090 billion for the same period in 2024, with a same-store increase of $150 million [92]. - The company reported a net loss of $(355) million for the three months ended September 30, 2024, compared to a net loss of $(52) million for the same period in 2023 [93]. - For the nine months ended September 30, 2024, net operating revenues increased to $9.369 billion from $9.308 billion for the same period in 2023, with a same-store increase of $454 million [94]. - The company experienced a net loss of $(334) million for the nine months ended September 30, 2024, compared to a net loss of $(70) million for the same period in 2023 [95]. - Net loss attributable to Community Health Systems, Inc. stockholders was $(391) million for Q3 2024, compared to $(91) million for Q3 2023 [124]. - Net operating revenues for the nine months ended September 30, 2024, increased to $9.369 billion, compared to $9.308 billion for the same period in 2023, a 0.7% increase [125]. Revenue Sources - Self-pay revenues represented approximately 1.1% of net operating revenues for the three months ended September 30, 2024, down from 1.5% for the same period in 2023 [98]. - Medicare revenue as a percentage of net operating revenues decreased to 18.2% in September 2024 from 19.7% in September 2023 [108]. - The percentage of revenues from Managed Care and other third-party payors increased to 49.0% in September 2024 from 47.9% in September 2023 [108]. - The company expects the portion of revenues from Medicare, Medicare Managed Care, and Medicaid programs to increase over the long term due to demographic trends [108]. Operating Metrics - Consolidated inpatient admissions decreased by 4.1% for the three months ended September 30, 2024, while same-store inpatient admissions increased by 2.4% [94]. - Inpatient admissions decreased by 4.1% and adjusted admissions decreased by 3.7% during Q3 2024 compared to Q3 2023 [117]. - Operating expenses increased to 94.2% of net operating revenues in September 2024 compared to 89.5% in September 2023 [114]. - Operating expenses as a percentage of net operating revenues increased from 94.4% in Q3 2023 to 106.6% in Q3 2024 [118]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by $144 million to approximately $264 million for the nine months ended September 30, 2024 [132]. - Net cash used in investing activities was approximately $132 million for the nine months ended September 30, 2024, a decrease of $74 million compared to approximately $206 million for the same period in 2023 [133]. - Capital expenditures totaled $251 million for the nine months ended September 30, 2024, down from $357 million for the same period in 2023, with expected total capital expenditures of approximately $350 million to $400 million in 2024 [144]. Debt and Financing - Approximately $20 million of the company's outstanding debt of approximately $11.5 billion is due within the next 12 months as of September 30, 2024 [139]. - The company extinguished approximately $143 million principal value of the 5⅝% Senior Secured Notes due 2027 through open market repurchases during the three months ended September 30, 2024 [138]. - Outstanding borrowings under the ABL Facility were $372 million with approximately $438 million of additional borrowing capacity as of September 30, 2024 [136]. Legal and Regulatory Risks - The company is subject to potential legal challenges that may arise from recent U.S. Supreme Court decisions affecting regulatory authority in the healthcare industry [106]. - The company is subject to various regulatory and legal risks that could materially affect its business and financial condition [179]. Economic and Market Conditions - The company faces risks from current negative macroeconomic conditions, including high inflation and interest rates, which could affect future results [177]. - Changes in health insurance enrollment and reimbursement policies could significantly affect the company's operations [177]. - The company anticipates challenges related to labor market conditions, including hiring and retaining qualified medical personnel [178]. Accounting and Financial Reporting - The company is currently evaluating the impact of the new Accounting Standards Update on its financial statements, effective for annual periods beginning after December 15, 2023 [173]. - The company is currently evaluating the impact of adopting ASU 2023-09 on its condensed consolidated financial statements [175]. - No material impact is expected from the adoption of other recently issued ASUs on the company's consolidated financial position or results of operations [175].

Community Health Systems, Inc. (CYH) reported a third-quarter 2024 adjusted loss of 30 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 16 cents. However, the bottom line improved from the prior-year loss of 33 cents per share.Net operating revenues rose 0.1% year over year to $3.1 billion in the quarter under review. The top line beat the consensus mark by a whisker.The quarterly earnings suffered from lower admissions, patient days, and higher salaries and benefits expenses. ...

Community Health Systems (CYH) reported $3.09 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 0.1%. EPS of -$0.30 for the same period compares to -$0.33 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.08 billion, representing a surprise of +0.25%. The company delivered an EPS surprise of -87.50%, with the consensus EPS estimate being -$0.16.While investors scrutinize revenue and earnings changes year-over-year and how they com ...

Community Health Systems (CYH) came out with a quarterly loss of $0.30 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to loss of $0.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -87.50%. A quarter ago, it was expected that this operator of accute care hospitals would post a loss of $0.11 per share when it actually produced a loss of $0.17, delivering a surprise of -54.55%.Over the last fou ...

COMMUNITY HEALTH SYSTEMS, INC. Investor Contact: Kevin Hammons President and Chief Financial Officer (615) 465-7000 Exhibit Number 99.1 COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES THIRD QUARTER ENDED SEPTEMBER 30, 2024 RESULTS FRANKLIN, Tenn. (October 23, 2024) – Community Health Systems, Inc. (NYSE: CYH) (the "Company") today announced financial and operating results for the three and nine months ended September 30, 2024. The following highlights the financial and operating results for the three months ended ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, inves ...

Community Health Systems, Inc. (CYH) recently partnered with Denim Health to integrate conversational AI technology into its Patient Access Center (PAC), which handles calls for almost a thousand CYH-affiliated primary care providers. These are responsible for operating more than 25,000 inbound calls every day. The collaboration aims to enhance the patient experience and streamline call center operations. After a successful pilot in late 2023, Community Health deployed Denim Health's AI bot across its PAC t ...

Community Health Systems, Inc. (CYH) recently announced that its subsidiary, Northwest Urgent Care, LLC, has agreed to buy 10 urgent care centers in Arizona from Carbon Health. The move is expected to boost the company's capacity and footprint in the region. The transaction is scheduled to be completed in the fourth quarter of 2024. Northwest Urgent is part of Northwest Healthcare, which serves Tucson and its surrounding communities in Arizona. The acquisition is expected to expand Northwest Healthcare's ne ...

It has been about a month since the last earnings report for Community Health Systems (CYH) . Shares have added about 2.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Community Health Systems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Community Health Q2 ...