Chesterton Tribune

Porter hospital owner posts strong year

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By KEVIN NEVERS

Community Health Systems Inc. (CHS), the owner of Porter hospital, is reporting a net income in 2009 of $243.1 million or $2.66 per diluted share, compared to $218.3 million or $2.32 per diluted share in 2008.

In the fourth quarter of 2009 CHS posted a net income of $65.1 million or 70 cents per diluted share, compared to $59.7 million or 65 cents per diluted share in the third quarter and $59.9 million or 65 cents per diluted share in the year-ago period.

“We are very pleased to report another successful year for Community Health Systems,” CHS Chair, President, and CEO Wane Smith said in a statement released after deadline on Wednesday. “Our financial and operating performance for the fourth quarter 2009 reflects our proven ability to deliver consist quarterly results, even in the face of a challenging economy. We ended the year with record consolidated (operating) revenues of over $12.1 billion, up 11 percent over the previous year.”

“Our results also reflect the continued success of our centralized operating strategy as evidenced by favorable annual same-store revenue growth and solid margin expansion,” Smith added. “We have continued to focus on improving the performance at the individual hospital level in all of our markets, especially at our more recently acquired facilities.”

“As we look ahead to 2010, we see additional opportunities for continued growth for Community Health Systems,” Smith said. “As a national hospital operator, our geographically diverse portfolio has always been one of our strengths, especially in an uncertain economic environment. Our hospitals have strong positions in their respective markets and no one state represents a disproportionate percentage of our revenues or admissions.”

Full Year 2009

Net operating revenues were $12.1 billion, compared to $10.9 billion in 2008, a 10.9 percent increase.

Income from continuing operations was $304.8 million, compared to $233.7 million in 2008. Income from continuing operations attributable to CHS common stockholders increased to $2.64 per diluted share, compared with $2.11 per diluted share in 2008.

The consolidated financial results for 2009 reflect a 3.9 percent increase in total admissions compared to 2008. “This increase was due primarily to acquisitions during the past 12 months,” CHS said.

On a same-store basis, admissions decreased by 1.5 percent, while net operating revenues increased by 5.9 percent.

4Q 2009

Net operating revenues were $3.1 billion, compared to $3.087 billion in the third quarter and $2.8 billion in the year-ago period.

Income from continuing operations was $84.1 million, compared to $75.4 million in the third quarter and $62 million in the year-ago period. Income from continuing operations attributable to CHS common stockholders increased to 70 cents per diluted share compared to 57 per diluted share in the year-ago period.

The consolidated financial results for the fourth quarter reflect a 4.0-percent increase in total admissions compared to the year-ago period, an increase also attributed to acquisitions.

On a same-store basis, admissions decreased by 0.5 percent compared to the year-ago period, while net operating revenues increased by 7.3 percent.

Projections for 2010

CHS is projecting net operating revenues for the year in the $12.9 billion to $13.2 billion range; income from continuing operations per diluted share of $2.85 to $3; an increase in same-store admissions of 0.0 percent to 2.0 percent; and the acquisition of two new hospitals.

The Company

Through its subsidiaries, CHS—headquartered in Franklin, Tenn.—currently owns, leases, or operates 122 hospitals in 29 states with an aggregate of around 18,000 licensed beds.

Through its QHR subsidiary, CHS also provides management and consulting services to more than 150 non-affiliated general acute care hospitals.

 

Posted 2/19/2010