Community Health Systems' financial position took a nosedive at the end of 2017, a result of a number of factors including significantly decreased revenue and volume.
Franklin, Tenn.-based CHS reported a $2 billion net loss in the fourth quarter of last year—about $18 per share—significantly wider than the $220 million net loss the company reported in the fourth quarter of 2016.
The company in a news release pinned the poor results on a revaluation of goodwill and assets held for sale, and in part to increased contractual allowances and in bad debt provision.
CHS recorded an impairment charge of $1.419 billion on the value of goodwill for its hospital reporting unit and impairment charges of approximately $341 million to reduce the value of long-lived assets at hospitals that the chain has sold or identified for sale and at certain under-performing hospitals, according to its filing.
In addition, CHS' revenues took a nearly 32% hit in the fourth quarter of 2017, dropping to about $3 billion from about $4.5 billion in the same time in 2016. Overall in 2017, CHS' operating revenue totaled $15.4 billion, a nearly 17% decrease from 2016, in which its operating revenue was $18.4 billion.
CHS' adjusted earnings before interest, tax, depreciation and amortization was $409 million in the fourth quarter of 2017, down from $564 million at the same time in 2016.
CHS' total admissions dropped by 19% in the fourth quarter of 2017 compared with the same point in 2016.