Community Health Systems aims to sell off more of its hospitals following a disappointing quarter, according to its earnings report.
CHS recorded a net loss of $137 million in the second quarter of fiscal year 2017, it reported. It totaled $4.1 billion in net operating revenue for the quarter, a decrease of nearly 10% from the second quarter of 2016.
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The system has faced significant financial problems since it purchased a number of hospitals across the country and has sold off several of its acquisitions to pay down debt, including two in Washington state. CHS has divested 20 hospitals so far and has agreements in place to sell 10 more, it reported.
In addition to these 30 hospitals, the system said parties have expressed interest in purchasing additional facilities. If those deals are made, CHS will bring in an extra $1.5 billion in revenue.
The company reported a total debt of $14.7 billion at the end of the second quarter, a decrease of about $100 million since the beginning of the year.
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Doctors at two of the system’s most profitable entities have expressed concern that its financial woes are hurting patient care. A group of physicians at Lutheran Health Network attempted to purchase the system from CHS in response to what they called severe neglect, and doctors at Lower Keys Medical Center claim that CHS is overcharging patients to pay off its debts more quickly.
CHS is one of the nation’s leading operators of general acute care hospitals. Its affiliates own, operate or lease 137 hospitals in 21 states with approximately 22,000 licensed beds, according to its website. In addition to its recent financial woes, the system faced steep stock losses tied to patient value, too.