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.”
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.”
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.
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.