Earnings – Health Care
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Community Health Systems narrowed its losses to $675 million in 2019 as it continued aggressively cutting the size of its portfolio of hospitals throughout the year.

That loss was improved 14% after CHS reported it was $788 million in the red the prior year.

The Franklin, Tennessee-based health system giant reported a loss of $373 million in the quarter ending Dec. 31, or $3.27 per share, compared to a net loss of $328 million, of $2.91 per share, for the same period in 2018. The company posted revenue of $3.3 billion in the fourth quarter, down from $3.5 billion in the same quarter a year earlier. 

Case Study

Across-the-Board Impact of an OB-GYN Hospitalist Program

A Denver facility saw across-the-board improvements in patient satisfaction, maternal quality metrics, decreased subsidy and increased service volume, thanks to the rollout of the first OB-GYN hospitalist program in the state.

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For the year, CHS had revenues of $13.2 billion in 2019, down from $14.2 billion in 2018. 

Wayne Smith, chairman and CEO of CHS, called it a “strong finish” for the year.

“Our successful divestiture program, along with strategic growth initiatives in our core portfolio of markets, has driven better results, including improved same-store volume and net revenue growth in 2019,” Smith said in a statement. “As we enter 2020, we expect to deliver incremental growth, driven by a combination of continued same-store net revenue performance and execution across our strategic margin improvement programs.”

CommonSpirit Health posted $40 million in operating income in the second quarter of fiscal 2020 (PDF), its first operating gain since the health system was formed through the merger of Catholic Health Initiatives and Dignity Health last year.

The Chicago-based health system—the largest nonprofit health system in the country by revenue—cited a revenue jump to $7.5 billion, up 3.2% from $7.2 billion during the same quarter the prior year. The health system reported its total net income was $579 million, up from a loss of $724 million in the same quarter a year earlier.

In its first consolidated financial report last year after merging, the health system reported a net loss of $290 million on revenue of almost $29 billion, down from $1.1 billion in earnings on $29 billion in revenue in fiscal 2019. The health system’s operating loss was much higher when taking into account special charges and merger-related costs.

Case Study

Across-the-Board Impact of an OB-GYN Hospitalist Program

A Denver facility saw across-the-board improvements in patient satisfaction, maternal quality metrics, decreased subsidy and increased service volume, thanks to the rollout of the first OB-GYN hospitalist program in the state.

See how

CommonSpirit operates 137 hospitals and hundreds of additional facilities in 21 states.

The health system has called diversifying and increasing revenue from non-acute care settings “a strategic priority.” They reported a 4.1% increase in outpatient services. CommonSpirit’s home care and hospice care business grew 10.5% in the first half of the fiscal year compared to the previous year. Barely 30% of the company’s revenue came from value-based agreements with payers, employers and government programs, officials said.

“These results demonstrate that we are gaining traction with the strategy and operating model we’ve put in place,” said Daniel Morissette, CommonSpirit’s senior executive vice president and chief financial officer, in a statement.

“A year into our new organization we have a clear vision and well-defined strategy, we are growing in key markets and service lines, and we are keeping our expenses in check,” he said. “We still have significant work to do to realize our ambitious growth and savings goals, but there is no question that these results represent a step in the right direction.”