This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Dive Brief: For-profit hospital operator Community Health Systems is looking to slow down its aggressive pace of divestitures as it focuses on growth in its core markets, executives said on an earnings call Thursday. The Tennessee-based system has divested about 35% of its hospital portfolio since 2019 in an attempt to  deleverage its portfolio and free up ...

First, I would like to say I am honored to speak to you today as CEO of Community Health Systems, Inc. I want to express my sincere gratitude to our Board of Directors for their support and their confidence in appointing Jason and myself to our permanent roles as CFO and CEO, respectively. I would also like to thank many of the people on this call for offering your support and congratulations, which has meant so much to me personally. And, of course, I want to acknowledge our employees and physicians and ev ...

Performance in Q4 2025 was driven by sequential margin expansion resulting from higher acuity, improved payer mix, and sustained cost controls. Management attributed growth in specific markets to targeted capital investments, such as ER expansions in Knoxville and a $10 million women's services investment in Birmingham. The company successfully reduced leverage from 7.4x to 6.6x year-over-year through a combination of operational improvements and the application of divestiture proceeds to debt reducti ...

分组1 - Tenet Healthcare reported quarterly earnings of $4.7 per share, exceeding the Zacks Consensus Estimate of $4.08 per share, and up from $3.44 per share a year ago, representing an earnings surprise of +15.23% [1] - The company posted revenues of $5.53 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.38%, and an increase from $5.07 billion year-over-year [2] - Tenet has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed the market, losing about 2.9% since the beginning of the year compared to the S&P 500's gain of 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is $4.21 on revenues of $5.55 billion, and for the current fiscal year, it is $16.67 on revenues of $22.27 billion [7] - The Zacks Industry Rank for Medical - Hospital is currently in the bottom 14% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Leadership Changes - Community Health Systems (CHS) has appointed Kevin Hammons as CEO, effective immediately, after serving as interim CEO since October 1 [1] - Jason Johnson has been made the permanent CFO after serving as interim finance chief [2] Executive Background - Kevin Hammons joined CHS in 1997 and has held various roles including CFO since January 2020, overseeing accounting, regulatory reporting, budgeting, corporate finance, and investor relations [2][3] - Jason Johnson has been with CHS since 2012, previously serving as chief accounting officer and vice president and corporate controller [3] Company Operations - CHS owns or leases 69 hospitals and operates over 1,000 sites of care across the country [5] - The company plans to continue pursuing divestitures as a long-term goal to deleverage its balance sheet [5] - Recent revenue results were in line with expectations, but CHS has faced challenges with sluggish volumes affecting earnings for multiple quarters [5]

Core Insights - HCA Healthcare has consistently grown profits for over a decade, outperforming the S&P 500 while remaining undervalued with strong upside potential [3][4] - The company is well-positioned to benefit from the aging U.S. population and increasing healthcare spending [5][6] Industry Trends - The U.S. population aged 65 and older increased by 3.1% year-over-year in 2024, while the population under 18 decreased by 0.2% [6] - The share of the population aged 65 and older has risen from 12% in 2004 to 18% in 2024, indicating a significant demographic shift [6][7] - Healthcare spending is strongly correlated with age, with per capita spending for those aged 85 or older being 8.5 times higher than for children under 18 [9] Company Positioning - HCA Healthcare operates the largest healthcare system in the U.S., with over 190 hospitals and 2,400 ambulatory sites, positioning it for continued profit growth [5][12] - The company has increased its hospital count from 166 in 2014 to 191 by the end of Q3 2025, and its licensed bed count from over 43,000 to over 50,500 [16] Financial Performance - HCA Healthcare has achieved a compounded annual growth rate (CAGR) of 6% in revenue and 7% in net operating profit after tax (NOPAT) since 2007 [18] - The company's Core Earnings grew 14% CAGR from $598 million in 2007 to $6.5 billion in the TTM ended Q3 2025 [19] - HCA Healthcare generated a cumulative $50.4 billion in free cash flow (FCF) from 2014 through Q3 2025, with $10.5 billion generated in the TTM alone [23] Shareholder Returns - HCA Healthcare has paid $4.3 billion in cumulative dividends since 2018 and has increased its quarterly dividends from $0.35 per share in Q1 2018 to $0.72 per share in Q4 2025 [25] - The company repurchased $35.6 billion of shares from 2018 through Q3 2025, with a new $10 billion share repurchase program authorized in January 2025 [26] Challenges - The healthcare industry faces ongoing labor shortages, with projections indicating a global healthcare worker shortage of 10 million by 2030 [29] - Despite rising labor costs, HCA Healthcare has managed to reduce salaries and benefits as a percentage of revenue from 46% in 2020 to 44% in the TTM ending Q3 2025 [31]

Core Insights - Acadia Healthcare Company, Inc. (ACHC) reported adjusted third-quarter earnings of 72 cents per share, exceeding the Zacks Consensus Estimate by 7.5%, but reflecting a year-over-year decline of 20.9% [1][9] - Total revenues increased by 4.4% year over year to $851.6 million, slightly surpassing the consensus mark by 0.4% [1][9] Financial Performance - Same-facility revenues reached $827.8 million, a 3.7% increase year over year, but fell short of the Zacks Consensus Estimate by 1.4% [3] - Patient days increased by 1.3%, while admissions grew by 3.3% year over year [3] - Average length of stay decreased by 1.9% year over year, missing the consensus estimate by 3.2% [3] - Total expenses rose by 13.2% year over year to $811.6 million, driven by higher salaries, wages, benefits, and other operating costs [4] Cash and Debt Position - As of September 30, 2025, Acadia Healthcare had cash and cash equivalents of $118.7 million, up from $76.3 million at the end of 2024 [5] - Long-term debt increased to $2.3 billion from $1.9 billion as of December 31, 2024 [6] - Total equity rose to $3.1 billion compared to the end of 2024 [6] Share Repurchase and Guidance - Year-to-date share repurchases totaled $50.4 million, with no buyback activity in the third quarter [7] - 2025 revenue guidance was revised down to a range of $3.28 to $3.30 billion, and adjusted EBITDA is now estimated between $650 million and $660 million [8][10] Industry Comparison - HCA Healthcare reported adjusted EPS of $6.96, surpassing estimates by 23.2% and showing a 42% year-over-year improvement [12] - Universal Health Services reported adjusted EPS of $5.69, exceeding estimates by 22.1% and reflecting a 53.4% year-over-year increase [13] - Community Health Systems posted adjusted earnings of $1.27 per share, beating estimates and improving from a prior-year loss [14]

Core Viewpoint - Community Health Systems, Inc. will participate in a fireside chat at the UBS Global Healthcare Conference scheduled for November 10 - 12, 2025, indicating the company's engagement with investors and the healthcare sector [1] Company Participation - The fireside chat presentation is set to begin at 9:30 a.m. Eastern time on November 11, 2025, showcasing the company's commitment to investor relations [1] - The event will be accessible to investors through a live audio webcast, reflecting the company's efforts to enhance transparency and communication with stakeholders [1]

Group 1 - Community Health Systems (CHS) has agreed to sell its stakes in two joint ventures to Vanderbilt University Medical Center (VUMC) for $600 million, which includes the acquisition of the remaining 80% stake in the joint ventures that operate Tennova Healthcare-Clarksville and other ancillary businesses [7] - The deal will make Tennova Healthcare a part of VUMC's regional medical centers, expanding its presence in Tennessee, where VUMC already operates seven hospitals [3][7] - The transaction is expected to close early next year, pending regulatory approvals and closing conditions [7] Group 2 - VUMC's interest in the hospital is driven by population growth in Clarksville, which has a population of 200,000, making it Tennessee's fifth largest city [3] - CHS has been divesting full or partial stakes in several hospitals this year, including facilities in Florida, Texas, and North Carolina, indicating a strategic shift [5] - CHS's CEO mentioned during a recent investor call that the company has several deals in progress, hinting at ongoing restructuring efforts [4]

Core Insights - Pediatrix Medical Group, Inc. (MD) is scheduled to report its Q3 2025 results on November 3, 2025, with earnings estimated at 46 cents per share and revenues at $484.1 million [1][8] - The earnings estimate reflects a year-over-year increase of 4.6%, while the revenue estimate indicates a decline of 5.3% compared to the previous year [2][8] Earnings Estimates - The earnings estimate for Q3 has remained stable over the past 60 days, with no revisions [2][3] - For 2025, the revenue estimate is projected at $1.89 billion, representing a 6% decline year-over-year, while the EPS for the current year is expected to grow by 17.9% to $1.78 [3] Historical Performance - Pediatrix Medical has consistently beaten consensus earnings estimates in the last four quarters, with an average surprise of 28.7% [4] Earnings Prediction Model - The current model does not predict an earnings beat for Q3, as the Earnings ESP is 0.00% and the Zacks Rank is 3 (Hold) [5] Q3 Factors - The Q3 EPS estimate of 46 cents suggests growth, but the revenue estimate of $484.1 million indicates a decline [8] - A projected 7.4% year-over-year decline in net patient service revenue and a 5.7% decline in hospital contract administrative fees are expected to impact the top line [9] Operating Expenses and Cash Flow - Total operating expenses are estimated to decline nearly 11% year-over-year, aided by lower practice salaries, benefits, and G&A costs [11] - The estimated operating cash flow for Q3 is projected to be approximately $121 million, showing significant improvement from the previous year [11] Industry Context - Other companies in the medical sector, such as HCA Healthcare, Universal Health Services, and Community Health Systems, have reported their earnings, showcasing varied performance metrics [12][13][14][15]