Chesterton Tribune

Porter hospital owner posts improved 2Q

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Community Health Systems Inc. (CHS), the owner of Porter hospital, is reporting a net income of $83.359 million or 94 cents per diluted share, compared to $75.474 million or 85 cents in the first quarter and $35.389 million or 39 cents in the year-ago period.

“Community Health Systems delivered a solid financial and operating performance for the second quarter of 2012,” CHS Chair, President, and CEO Wayne Smith said in a statement released on Wednesday. “Revenues were up 8.1 percent on a consolidated basis and 4.5 percent on a same-store basis compared with the second quarter of last year.”

“We are especially pleased with our volume trend improvement, with moderation in the rate of decline in admissions and an increase in adjusted admissions on a same-store basis, compared with a year ago,” Smith noted. “These results reflect execution of our key strategies for success—implementing best practice standards, making selective acquisitions, improving operational efficiencies, and recruiting physicians. In addition, our focus on disciplined expense management across our hospital network has yielded positive results in a challenging environment.”

“We have continued to extend our market reach in 2012 through selective acquisitions,” Smith added. “Our strategy has always been focused on identifying select hospital facilities in strategic markets that meet our operating profile and provide significant opportunity for improvement. We will continue to pursue our acquisition strategy and leverage our proven track record of successful hospital acquisitions in a consolidating but currently highly fragmented industry.”

On July 2, CHS acquired substantially all of the assets of Memorial Health Systems in York, Pa. Those assets include a 100-bed hospital, the Surgical Center of York, and other outpatient and ancillary services.

Other 2Q Numbers

Net operating revenues were $3.2 billion, compared to $3.3 billion in the first quarter, and $3.0 in the year-ago.

Income from continuing operations was $102.2 million or 93 cents per diluted share, compared to $99.7 million or 85 cents in the first quarter and $92.9 million or 81 cents in the year-ago.

The consolidated financial results reflect a 3.0 percent increase in total admissions and a 5.7 percent increase in total adjusted admissions compared to the year-ago period.

On a same-store basis, admissions decreased 2.0 percent, while adjusted admissions increased 0.5 percent compared to the year-ago period.

On a same-store basis, net operating revenues increased 4.5 percent compared to the year-ago period.

The Company

Through its subsidiaries, CHS—headquartered in Franklin, Tenn.—currently owns, leases, or operates 135 hospitals (134 on May 1) in 29 states with an aggregate of approximately 20,000 licensed beds.



Posted 7/27/2012