Chesterton Tribune

Porter hospital owner posts 1Q results

Back to Front Page

 

 
 

 

 

By KEVIN NEVERS

Community Health Systems Inc. (CHS), the owner of Porter hospital, is reporting a net income for the first quarter of 2011 of $61.3 million or 67 cents per diluted share, compared to $70 million or 75 cents per share for the year-ago period, a decrease of 12.4 percent.

CHS reported a net income of $69.5 million or 76 cents per diluted share for the fourth quarter of 2010.

CHS is attributing the result chiefly to “the loss on sale of a physician clinic and an impairment of a hospital held for sale.”

“We are pleased to begin 2011 with a solid financial and operating performance for the first quarter,” CHS Chair, President, and CEO Wayne Smith said in a statement released Wednesday. “We have continued to focus on achieving operational excellence at the individual hospital level across all of our markets. Our consistent record of demonstrating measurable improvements, especially at our more recently acquired facilities, reflects our ability to recruit physicians, drive cost efficiencies, and enhance the level and quality of healthcare services.”

“As a result,” Smith noted, “we achieved a 9 percent increase in revenues over the same period in 2010 on a consolidated basis with same-store revenues up over 5 percent from a year ago. Our centralized operating strategy leverages our scale and expertise, and has continued to deliver favorable results even in a challenging economic environment.”

Acquisitions

On April 18, CHS made public its improved offer to acquire all outstanding shares of Tenet Health Corporation: $6 per share in cash. Late last year CHS had offered $5 per share in cash and $1 per share in CHS common stock.

On April 22, Tenet’s Board of Directors rejected the latest offer, as it had rejected the original offer, which CHS said represented a 40-percent premium over Tenet’s closing stock price on Dec. 9.

On Dec. 20, 2010, CHS announced its intention to nominate director nominees for election to Tenet’s Board of Directors and on Jan. 14 a full slate of 10 independent director nominees was nominated, CHS said. All 10 positions on Tenet’s Board of Directors are up for election, which Tenet has postponed to Nov. 3, CHS said.

Meanwhile, CHS, through a subsidiary, has executed a definitive agreement to acquire substantially all assets of Mercy Health Partners in Northeast Pennsylvania. Those assets include two full-service acute-car hospitals, a long-term acute care hospital, and other outpatient and ancillary services.

“We have continued to pursue our selective acquisition strategy in 2011 and we are excited about the opportunity to expand our market presence in Pennsylvania with the acquisition of the assets of Mercy Health Partners,” Smith said. “With the current healthcare regulatory climate, we believe there are significant acquisition opportunities with a great number of independent hospitals looking for operationally-focused partners.”

1Q 2011

Net operating revenues were $3.4 billion, compared to $3.4 billion in the fourth quarter and $3.1 billion in the year-ago period.

Income from continuing operations was $91.1 million, compared to $92.2 million in the fourth quarter and $86.5 million in the year-ago period.

The consolidated financial results reflect a 1.4 percent increase in total admissions compared to the year-ago period.

On a same-store basis, admissions decreased by 3.4 percent while net operating revenues increased 5.1 percent compared to the year-ago period.

The Company

Through its subsidiaries, CHS—headquartered in Franklin, Tenn.—currently owns, leases, or operates 130 hospitals in 29 states with an aggregate of around 19,300 licensed beds.

 

 

Posted 4/28/2011