Community Health Systems continued to see a steep net loss in the second quarter of 2018 as its revenues admissions continue to fall.
The Franklin, Tenn.-based for-profit chain reported a net loss of $110 million in the quarter, up from $137 million during the same period in 2017.
Operating revenues were $3.56 billion, down 14% from the prior year, when they were $4.14 billion. Despite the steep decline, revenues still beat some analysts' expectations.
Meanwhile, same-store admissions declined 2.1% during the quarter, which ended June 30, compared with the prior year, and adjusted admissions decreased 0.2%. Same-store results exclude underperforming hospitals the company sold in 2017 and 2018.
Total admissions, including those divested hospitals, declined nearly 17% during the quarter. CHS has completed seven hospital divestitures so far this year, and has entered into definitive agreements to sell five more.
Closed sales CHS has announced this year include Byrd Regional Hospital in Leesville, La., Tennova Healthcare–Jamestown in Jamestown, Tenn., Tennova–Dyersburg Regional in Dyersburg, Tenn., Tennova–Regional Jackson in Jackson, Tenn., Tennova Volunteer Martin in Martin, Tenn. and Bayfront Health Dade City in Dade City, Fla.
Together, those hospitals, along with others the company is looking to sell, have $2 billion in combined annual operating revenue, according to CHS.
Another important financial metric, adjusted earnings before interest, taxes, depreciation and amortization, was also down in the quarter. EBITDA rounded out the quarter at $411 million, down 5.5% from $435 million the prior year.
Same-store net operating revenues, a bright spot in the report, increased 3.3% during the quarter, year over year.
That was CEO Wayne Smith's focus in a written statement on the results, which he said show progress in key areas of strategic focus, including same-store results, divestitures and refinancing.
"As we complete additional divestitures this year, we believe our portfolio will become stronger, and more of our resources can be directed to markets where we have the greatest opportunities to drive incremental growth," he said. "We remain confident in our ability to strengthen our company through execution of our strategic growth initiatives, investments in high-quality healthcare services, and a continuous focus on expense management."
CHS' share price was up about 8% Thursday afternoon.