munity Health Systems(CYH) - 2025 Q1 - Quarterly Report

Financial Performance - Net operating revenues increased from $3.140 billion for the three months ended March 31, 2024, to$3.159 billion for the same period in 2025, representing a growth of approximately 0.6%[110] - The company reported a net income of $25 million for the three months ended March 31, 2025, compared to a net loss of$(6) million for the same period in 2024[111] - Same-store net operating revenues increased by $94 million, or 3.1$24 million to approximately $120 million for the three months ended March 31, 2025[144] - Net cash provided by investing activities was approximately$444 million for the three months ended March 31, 2025, compared to net cash used in investing activities of approximately $99 million for the same period in 2024[145] - Net cash used in financing activities was approximately$170 million for the three months ended March 31, 2025, a change of $183 million compared to net cash provided by financing activities of approximately$13 million for the same period in 2024[146] Debt and Financing - Approximately $29 million of the company's outstanding debt of approximately$11.3 billion is due within the next 12 months[153] - As of March 31, 2025, outstanding borrowings under the ABL Facility were $200 million, with approximately$651 million of additional borrowing capacity available[149] - The provision for income taxes increased to $42 million for the three months ended March 31, 2025, compared to$28 million for the same period in 2024[141] Divestitures and Acquisitions - The company divested two hospitals in Florida and sold a 50% ownership interest in a hospital in Mississippi, which represented annual net operating revenues of approximately $359 million in 2024, receiving total net proceeds of approximately$276 million[105] - The company completed the sale of Lake Norman Regional Medical Center for approximately $284 million on March 31, 2025[107] - The company has entered into definitive agreements to sell its 50$460 million, subject to adjustments[108] - The company is considering divesting additional hospitals and non-hospital businesses that are less complementary to its business strategy[109] Risks and Challenges - The company faces significant risks and uncertainties that may cause actual results to differ materially from forward-looking statements, including economic conditions, regulatory changes, and geopolitical instability[190] - The company is impacted by high interest rates and inflationary pressures, which could affect its financial performance and operational costs[190] - Changes in healthcare public policy and funding for Medicare and Medicaid programs could significantly affect the company's operations and revenue[190] - The company is experiencing challenges in hiring and retaining qualified medical personnel, leading to increased labor expenses due to competitive market conditions[192] - Ongoing economic conditions, including inflationary pressures and elevated interest rates, may negatively affect the company's liquidity in the future[154] Accounts Receivable and Collections - Patient accounts receivable from hospitals represent approximately 98% of total consolidated accounts receivable, with days revenue outstanding at 56 days as of March 31, 2025[170] - The company expects to collect less than 4% of the amounts being pursued by outside collection agencies, which totaled approximately $1.5 billion at March 31, 2025[168] - Total gross accounts receivable was approximately$17.5 billion as of March 31, 2025, compared to $17.3 billion as of December 31, 2024[171] - Insured receivables accounted for 73.3$3.8 billion as of March 31, 2025, with no impairment identified during the last evaluation[173] - The total amount of unrecognized tax benefits that would impact the effective tax rate, if recognized, was $43 million at March 31, 2025[185] - A total of$6 million of interest and penalties is included in the liability for uncertain tax positions at March 31, 2025[185]