CHS reports loss in year, fourth quarter
Community Health Systems, parent company of ValleyCare Health System of Ohio, reported a loss of $1.7 billion in 2016, down from 2015’s income of $158 million.
Community also reported Monday a loss of $220 million in the fourth quarter, compared with a loss of $83 million reported in the fourth quarter of 2015.
Net operating revenues for the fourth quarter totaled $4.46 billion, a 6.9 percent decrease, compared with $4.79 billion for the same period in 2015.
Net operating revenues for the year ended Dec. 31, 2016, totaled $18.43 billion, a 5.1 percent decrease compared with $19.43 billion for the same period in 2015.
“Moving forward in 2017 and beyond, we are intently focused on efficiency improvements in our operations, strategic initiatives that enhance growth in our markets, and portfolio optimization that reduces our total debt,” said Wayne T. Smith, chairman and chief executive officer of Community, in a statement. “Most importantly, we remain committed to providing high-quality, safe health care for the patients and communities we serve.”
The Tennessee-based company announced last week it signed an agreement to sell its ValleyCare Health System hospitals – Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland – to Steward Health Care of Boston. The company also sold to Steward Sharon Regional Health System, Sharon, Pa., Easton Hospital in Easton, Pa., and three hospitals in Florida. The sale is expected to close during the second quarter this year.
The company didn’t say how much the sale of the eight hospitals is valued at, but said in its earnings release it will make $1.5 billion off the sale of 25 hospitals in 10 different transactions this year.
The company said the sales will be used to pay off debts.