Catholic Health Initiatives halved its operating losses to $40.1 million in the third quarter of fiscal 2017, the hospital giant said in a financial disclosure that detailed why it plans to divest its money-losing Louisville, Ky., hospitals.
KentuckyOne Health's Louisville hospitals posted a $12.7 million operating loss in the quarter on revenue of $231 million, compared with an operating loss of $23.8 million in the year-ago quarter.
CHI, the nation's third-largest not-for-profit hospital system, announced this month that its operating subsidiary, KentuckyOne, is selling most of its Louisville operations to stem losses there. KentuckyOne CEO Ruth Brinkley also resigned in the face of that performance.
KentuckyOne is seeking buyers for 10 of its facilities across the state. The system will focus its attention going forward on its markets in Lexington and eastern Kentucky.
In its disclosure, CHI estimated the value of the assets being divested in Louisville at $534.9 million.
Earnings in CHI's third quarter would have been significantly better without losses in CHI's Louisville operations. CHI posted $325 million in third-quarter earnings before interest, taxes,depreciation and amortization, excluding one-time items. That's a 31% increase compared with the year-ago period.