CHS reports Q1 net loss as COVID-19 continues to dent admissions
The Franklin, Tenn.-based system reported a net loss attributable to shareholders of $64 million on operating revenue of $3.01 billion for the quarter ended March 31, down from a net income attributable to shareholders of $18 million on operating revenue of $3.03 billion from the same prior-year period. That was, in part, due to a 7.2% decline in same-store adjusted admission year over year.
“Our market leadership teams continue to adjust their operating models as COVID cases fluctuate, by managing shifts in volumes, revenue, and expenses to achieve the best possible results,” CHS CEO Tim Hingtgen said in prepared remarks. “At the same time, we are making targeted capital investments and leveraging enterprise-wide programs to ensure our services are both accessible to consumers and facilitate growth over time.”
CHS ended 2020 with $511 million in net income attributable to shareholders as it finished its multi-year effort to sell underperforming hospitals, divesting five hospitals so far this year. But the company will continue to hear pitches from potential buyers of certain hospitals, executives noted.
Its $3.01 billion in first-quarter revenue exceeded analyst estimates by $50 million.