Community Health Systems Inc. (CHS), the owner of Porter hospital, has
reported a net income for the third quarter of 2011 of $74.3 million or 83
cents per diluted share, compared to $35.4 million or 30 cents for the
second quarter and $70.4 million or 76 cents per share for the year-ago
CHS attributed the second quarter’s performance to an impairment loss
related to the write-off of allocated goodwill.
“Our results for the third quarter of 2011 further extend (CHS’s) consistent
record of earnings growth in spite of a challenging marketplace,” CHS Chair,
President, and CEO Wayne Smith said in a statement released on Wednesday.
“While our volumes have been constrained by the macroeconomic environment,
we believe these results continue to demonstrate the underlying strength of
our operating model.”
Moves during the third quarter:
•On July 19, CHS executed a definitive agreement to acquire the assets of
Moses Taylor Health Care System in Northeast Pennsylvania, including the
217-bed Moses Taylor Hospital in Scranton and the 25-bed Mid-Valley Hospital
in Peckville. Expected to close in the first quarter of 2012.
•On Sept. 1, CHS closed on the sale of the SouthCrest Hospital in Tulsa,
Okla., and Claremore Regional Hospital in Claremore, Okla., to Hillcrest
Health Care System, part of Ardent Health Services.
•On Oct. 1, a CHS subsidiary acquired the assets of the Tomball Regional
Medical Center in Tomball, Texas, including the 358-bed hospital.
“Our ability to consistently execute our acquisition strategy is
encouraging,” Smith said. “As we continue to acquire new facilities, we have
the unique ability to leverage our proven model of standardization and
centralization across our growing hospital network. This strategy has been a
significant factor in effectively managing our operating costs and
integrating our acquisitions with favorable results. Additionally, our
successful physician recruitment strategy and consistent investments in
physical plant improvements have enhanced our reputation in local
communities who want a proven operator. We believe there are significant
opportunities in this environment for further acquisitions that fit our
Net operating revenues were $3.4 billion, compared to $3.4 billion for the
second quarter and $3.2 billion for the year-ago period.
Income from continuing operations was $95.8 million, compared to $92.9
million for the second quarter and $88.0 million for the year-ago period.
The consolidated financial results reflect an 0.7 percent decrease in total
admissions and a 4.9 percent increase in total adjusted admissions compared
to the year-ago period.
On a same-store basis, admissions decreased 7.0 percent and net operating
revenues increased 3.8 percent compared to the year-ago period.
Through its subsidiaries, CHS—located in Franklin, Tenn.—currently owns,
leases, or operates 131 hospitals in 29 states with an aggregate of around
19,700 licensed beds.