LOS ANGELES, Aug. 2, 2024 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Community Health Systems, Inc. ("Community Health" or "the Company") (NYSE: CYH) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Community Health issued a press release on Juny 19, 2024, "pr ...

10 Form 10-Q (Mark One) or Commission file number 001-15925 COMMUNITY HEALTH SYSTEMS, INC. (Exact name of registrant as specified in its charter) Delaware 13-3893191 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was requi ...

Financial Data and Key Metrics Changes - Net operating revenues for the quarter were $3.140 billion, representing year-over-year growth of 0.8% [20] - Same-store net revenue increased by 4.7%, driven by a 3.2% increase in adjusted admissions and a 1.4% growth in net revenue per adjusted admission [20][29] - Adjusted EBITDA for the quarter was $387 million, compared to $373 million in the second quarter of 2023 [29][57] - Average hourly wage rate increased by 4% year-over-year, while contract labor spend decreased by approximately $29 million or 39% from the previous year [21][58] Business Line Data and Key Metrics Changes - Strong growth in outpatient surgery was noted, with significant increases in emergency department visits, urgent care, and physician practices [30][35] - Same-store admissions improved by 3%, adjusted admissions improved by 3.2%, and surgeries were up by 0.6% [29][35] - The company opened a new tower in Knoxville and plans to open another inpatient tower in Foley, Alabama, to drive more inpatient business [3][15] Market Data and Key Metrics Changes - There has been a decrease in the volume of Medicaid patients, offset by an increase in commercial business [45] - The company is experiencing a shift from Medicare fee-for-service to Medicare Advantage, with solid commercial volumes [57] - The company has seen a better balance in growth between commercial and government-insured patients compared to the previous year [79] Company Strategy and Development Direction - The company has invested over $3 billion into health systems since 2018, focusing on expanding access and capacity [15] - A centralized recruitment program has been expanded to include allied health positions, with hiring up by more than 14% year-over-year [32] - The company is actively pursuing divestiture opportunities, with potential proceeds of more than $1 billion from various transactions [38][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth momentum, expecting continued improvement in the second half of the year [30][54] - The company anticipates the fourth quarter to be the strongest quarter of the year from an EBITDA and cash flow perspective [61] - Management noted that the demand for healthcare services is returning, particularly among commercially insured patients [79] Other Important Information - The divestiture of the Cleveland, Tennessee hospital is on track to be completed in the third quarter, with estimated proceeds of approximately $160 million [59] - The company has implemented new technology and workflows as part of Project Empower, which is expected to yield insights into cost savings opportunities [33][36] Q&A Session Summary Question: Visibility into asset sales given FTC's objections to the Novant deal - Management noted that the group of buyers is changing, with both for-profit and non-profit systems looking outside their traditional areas for expansion [42] Question: Impact of Medicaid patient volume decrease - Management indicated a decrease in Medicaid patients but an increase in commercial business, suggesting a shift rather than a loss to uninsured patients [45] Question: Increase in other operating expenses - Management explained that timing differences related to provider tax payments contributed to the increase in other operating expenses [50][76] Question: Outlook for surgical growth in the back half of the year - Management expects continued demand growth, particularly in the back half of the year, with a focus on procedural volumes [54][79] Question: Impact of enhanced subsidies on exchange volume - Management is actively advocating for the continuation of funding for exchange business, recognizing its importance for maintaining growth [74]

Core Viewpoint - Community Health Systems, Inc. (CYH) reported a wider adjusted loss in Q2 2024 compared to estimates, but showed improvement from the previous year’s loss [1][10] Financial Performance - Adjusted loss per share was 17 cents, worse than the Zacks Consensus Estimate of 11 cents, but improved from a loss of 22 cents in the prior year [1] - Net operating revenues increased by 0.6% year over year to $3.14 billion, exceeding the consensus mark by 2% [1] - Total operating costs rose by 1.2% year over year to $2.9 billion, higher than the estimate of $2.8 billion [4] - Net interest expenses increased by 4.3% year over year to $216 million, surpassing the estimate of $204.8 million [4] Operational Metrics - Patient days decreased by 5.7% year over year, missing estimates by 5.1% [3] - Average length of stay declined to 4.3 days, while occupancy rate improved by 70 basis points to 50% [3] - Admissions fell by 2.8% year over year, but same-store admissions improved by 3% [9] Debt and Cash Flow - Long-term debt stood at $11.5 billion, slightly up from $11.47 billion at the end of 2023 [5] - Operating cash flows increased to $101 million from $86 million in the prior year [5] - Cash and cash equivalents rose to $39 million from $38 million at the end of 2023 [11] 2024 Guidance - The company raised its net operating revenue guidance to between $12.5 billion and $12.7 billion for 2024, indicating a 0.8% increase from 2023 [6] - Adjusted EBITDA is now estimated to be between $1.52 billion and $1.60 billion, implying a 7.4% rise from the previous year [6] - Net loss per share is expected to be between 30 cents and 45 cents in 2024, compared to a net loss of $1.39 per share in 2023 [6] Other Updates - Depreciation and amortization for 2024 is predicted to be between $465 million and $480 million [7] - Net cash from operating activities is reaffirmed to be between $500 million and $650 million [8] - Capital expenditures are anticipated to be in the range of $350 million to $400 million [8]

Earnings Presentation – 2nd Quarter, 2024 July 24, 2024 Disclaimer Statement 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 that involve risk and uncertainties. All statements in this presentation other than statements of historical fact, including statements regarding projections, expected operating res ...

The reported revenue represents a surprise of +1.96% over the Zacks Consensus Estimate of $3.08 billion. With the consensus EPS estimate being -$0.11, the EPS surprise was -54.55%. Here is how Community Health Systems performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Community Health Systems (CYH) reported $3.14 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 0.8%. EPS of -$0.17 for the sa ...

Financial Performance - Net operating revenues for Q2 2024 totaled $3.140 billion, a 0.8% increase from $3.115 billion in Q2 2023[4] - On a same-store basis, net operating revenues increased by 4.7% year-over-year for Q2 2024[4] - Net loss attributable to Community Health Systems, Inc. stockholders was $(13) million, or $(0.10) per share (diluted), compared to $(38) million, or $(0.29) per share (diluted) in Q2 2023[5] - Adjusted EBITDA for Q2 2024 was $387 million, up from $373 million in Q2 2023[6] - For the six months ended June 30, 2024, net operating revenues totaled $6.279 billion, a 0.9% increase from $6.223 billion in the same period of 2023[8] - Net loss attributable to Community Health Systems, Inc. stockholders for the six months ended June 30, 2024, was $(55) million, or $(0.42) per share (diluted), compared to $(89) million, or $(0.68) per share (diluted) for the same period in 2023[9] - Adjusted EBITDA for the six months ended June 30, 2024, was $765 million, compared to $707 million for the same period in 2023[10] - Consolidated net operating revenues for the six months ended June 30, 2024, were $6,279 million, representing a 0.9% increase from $6,223 million in 2023[41] - Adjusted EBITDA for the same period was $765 million, an 8.2% increase compared to $707 million in 2023[41] - The Company reported a net income of $20 million for the six months ended June 30, 2024, compared to a net loss of $18 million in 2023[47] Cash Flow and Operating Activities - Net cash provided by operating activities was $101 million for Q2 2024, compared to $86 million in Q2 2023[4] - Net cash provided by operating activities significantly increased by 116.5% to $197 million from $91 million in 2023[41] - Cash and cash equivalents at the end of the period were $39 million, up from $38 million at the beginning of the period[47] Admissions and Occupancy - Same-store admissions increased by 3.0% and adjusted admissions increased by 3.2% for Q2 2024 compared to the same period in 2023[4] - Admissions in Q2 2024 were 105,748, a decrease of 2.8% from 108,799 in Q2 2023[38] - The number of admissions decreased by 2.6% to 212,803 from 218,423 in the previous year[41] - The average length of stay in Q2 2024 was 4.3 days, consistent with Q2 2023[38] - The occupancy rate for average beds in service was 50.0% in Q2 2024, compared to 49.3% in Q2 2023[38] - The average occupancy rate for beds in service improved to 52.0% from 50.6% in 2023[41] Debt and Financial Projections - The company completed a tack-on offering of $1.225 billion of Senior Secured Notes due 2032, using proceeds to redeem outstanding notes and fund repurchases[13] - Long-term debt increased to $11,504 million from $11,466 million at the end of 2023[44] - The Company projects net operating revenues for 2024 to be between $12,500 million and $12,700 million[59] - Adjusted EBITDA for 2024 is projected to range from $1,520 million to $1,600 million[59] - The projected net loss per share (diluted) for 2024 is expected to be between $(0.45) and $(0.30)[59] - Interest expense for 2024 is estimated to be between $850 million and $865 million, with cash paid for interest expected to be $730 million to $740 million[60] - The Company had outstanding borrowings of $273 million under its ABL Facility as of June 30, 2024, with approximately $599 million of additional borrowing capacity[57] - The Company anticipates capital expenditures for 2024 to be between $350 million and $400 million[62] - The weighted-average diluted shares outstanding are projected to be approximately 132 million to 133 million for 2024[62] Operational Challenges and Risks - The company faces risks associated with substantial indebtedness, leverage, and debt service obligations, impacting its ability to refinance or incur additional debt[66] - The company is experiencing increases in the amount and risk of collectability of patient accounts receivable, influenced by self-pay growth and difficulties in recovering payments[66] - The company is focused on maintaining provider arrangements with payors, which may be affected by the consolidation of health insurers and managed care companies[66] - The company is undergoing a redesign and consolidation of key business functions, including the implementation of a new core enterprise resource planning system[66] - The company is subject to potential impairments in the carrying value of goodwill and other intangible assets[66] - The company is impacted by competitive labor market conditions, affecting its ability to hire and retain qualified medical personnel[66] - The company is evaluating the effects of severe weather conditions and climate change on its operations and insurance recoveries[68] - The company is concentrating its revenue in a small number of states, which poses a risk to its financial stability[68] - The company is committed to realizing anticipated cost savings from its current strategic and operational cost savings initiatives[68]

The second-quarter earnings season for Hospital companies is likely characterized by the ongoing resumption of elective procedures, growing patient volumes, admission and utilization of resources. Continuous technological advancements are also expected to have boosted efficiency efforts within the industry during this period. The hospital space belongs to the Medical sector (one of the 16 broad Zacks sectors within the Zacks Industry classification), overall earnings of which are projected to increase 18.4% ...

The investigation concerns whether Community Health and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. On this news, Community Health's stock price fell $0.33 per share, or 9.48%, to close at $3.15 per share on June 20, 2024. CONTACT: Danielle Peyton Pomerantz LLP dpeyton@pomlaw.com 646-581-9980 ext. 7980 NEW YORK, June 30, 2024 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Community Health Systems, Inc. ( ...

Community Health Systems, Inc. (CYH) recently announced an expansion of its partnership with Mark Cuban Cost Plus Drugs Company (Cost Plus Drugs). Under this extended partnership, CYH will source more medications at lower costs for use at its affiliated hospitals. The Cost Plus Drugs Marketplace aims to provide transparent pricing and make drugs cheaper. Hence, it charges only a 15% markup on the actual cost of drugs. CYH is expected to save hundreds or thousands of dollars while purchasing drugs at this lo ...