Community Health Systems (CHS) reported a net loss of $391 million for the third quarter, a significant increase compared to the same period last year. The loss is attributed to various factors, including payer denials, operational expenses, and the impact of Hurricane Helene.
Despite the challenges, CHS generated $3.09 billion in revenue for the quarter, driven by higher patient volumes and growth in its ambulatory surgery center business. However, the financial strain caused by aggressive denial tactics from managed care plans overshadowed the revenue growth.
CHS is actively pursuing a strategic plan to generate $1 billion through the sale of its facilities. The health system is also making progress in reducing contract labor costs.
The operational challenges faced by CHS were exacerbated by Hurricane Helene, which caused significant facility damage and disruptions.
Looking ahead, CHS has adjusted its guidance for 2024 and remains committed to its strategic growth plans. The focus is on addressing payer denials and operational disruptions while pursuing long-term growth and stability.