Community Health Systems fell short of Wall Street analysts' expectations in the second quarter, posting a $13 million loss.
The health system did narrow its losses year over year, as CHS reported a $38 million loss in the second quarter of 2023. The company did beat the Street on revenue with $3.1 billion, surpassing analysts' predictions, per Zacks Investment Research.
Revenues were on par with the prior-year quarter, when CHS also reported $3.1 billion, according to its earnings report released Wednesday evening. Same-store net operating revenues increased by 4.7% year over year, the company said.
Admissions decreased by 2.8% compared to the second quarter of 2023, CHS said.
CHS CEO Tim Hingtgen said on the company's earnings call Thursday morning that the rising same-store revenues highlight the efficacy of some of CHS' work to improve operations and generate value. For example, it's invested in bed expansion initiatives and physician recruitment programs, he said.
In addition, CHS has pushed for greater capacity optimization that addressed length of stay and freed up more capacity to treat patients, he said.
The health system is also feeling the benefits from clarification around the "two midnights" rule, Hingtgen said, which requires that patients be admitted if the clinical team believes they require care that lasts more than two midnights.
"We believe the fundamentals are solid and we can build upon it in upcoming quarters," he said.
This marks the second straight quarter in which CHS has trimmed its losses, as, in the first quarter, the company posted a $41 million loss. By comparison, it posted a $51 million loss in the first quarter of 2023.
CHS said in the report that the decrease in net loss is attributable to several factors including the early "extinguishment" of debts, increased reimbursement rates and reduced expenses for contract labor.
Through the first six months of the year, CHS has posted $55 million in losses, down from $89 million in the first half of 2023. Revenues at midyear are $6.3 billion, compared to $6.2 billion through the first six months of 2023.
The health system expects to post a loss of between 30 cents and 45 cents per share for the full year as well as revenues between $12.5 billion and $12.7 billion.