Community Health Systems, Inc. (CHS) reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a slight increase in net operating revenues but significant losses compared to the previous fiscal period.
For Q3 2024, CHS recorded net operating revenues of $3,090 million, a marginal increase from $3,086 million in Q3 2023. For the nine months ended September 30, 2024, revenues rose to $9,369 million from $9,308 million in the same period of 2023. However, total operating expenses surged to $3,295 million in Q3 2024, up from $2,913 million in Q3 2023, and for the nine months, expenses increased to $9,105 million from $8,678 million. This led to a loss from operations of $(205) million in Q3 2024, contrasting with an income of $173 million in Q3 2023.
The net loss for Q3 2024 was $(355) million, significantly higher than the $(52) million loss reported in Q3 2023. The net loss attributable to CHS stockholders was $(391) million, compared to $(91) million in the prior year. Basic loss per share for Q3 2024 was $(2.95), compared to $(0.69) in Q3 2023. For the nine-month period, the net loss attributable to stockholders increased to $(446) million from $(180) million in 2023.
The company attributed the increased losses to several factors, including after-tax charges of $13 million for technology modernization, $223 million for impairment of long-lived assets, and $116 million for professional liability claims accrual. Additionally, the impact of Hurricane Helene was estimated to have caused a revenue loss of approximately $7 million.
On the balance sheet, total assets decreased to $13,905 million as of September 30, 2024, down from $14,455 million at the end of 2023. The total stockholders’ deficit increased to $(1,592) million, compared to $(1,147) million at the end of 2023. The company reported an accumulated deficit of $(4,010) million, up from $(3,564) million at the end of 2023.
Strategically, CHS engaged in acquisitions and divestitures, acquiring operating assets of certain physician practices for approximately $1 million and completing the sale of one hospital in Tennessee. The company also entered into agreements to sell several hospitals, including the Regional Hospital of Scranton and Davis Regional Medical Center, which were classified as held-for-sale as of September 30, 2024.
Overall, while CHS experienced slight revenue growth, the significant increase in operating expenses and losses highlights ongoing challenges in the healthcare sector, compounded by strategic shifts and external market conditions.
About COMMUNITY HEALTH SYSTEMS INC
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