munity Health Systems(US:CYH)2024-10-24 20:34Financial 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].