Community Health Systems, Inc. (CYH) Bundle
A Brief History of Community Health Systems, Inc.
Community Health Systems, Inc. (CYH) has experienced significant fluctuations in its financial performance and operational dynamics over the years, particularly as of 2024. The company is primarily engaged in the operation of general acute care hospitals and outpatient facilities. As of September 30, 2024, the following financial metrics were reported:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Operating Revenues | $3.090 billion | $3.086 billion | 0.1% |
| Net Loss | $(355) million | $(52) million | +584.6% |
| Net Loss Attributable to Stockholders | $(391) million | $(91) million | +329.7% |
| Inpatient Admissions | Decreased 4.1% | Increased 0.5% | - |
| Adjusted Admissions | Decreased 3.7% | Increased 0.4% | - |
For the nine months ended September 30, 2024, the company reported:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Operating Revenues | $9.369 billion | $9.308 billion | 0.7% |
| Net Loss | $(334) million | $(70) million | +377.1% |
| Net Loss Attributable to Stockholders | $(446) million | $(180) million | +148.9% |
| Inpatient Admissions | Decreased 3.1% | Increased 0.9% | - |
| Adjusted Admissions | Decreased 3.4% | Increased 2.4% | - |
Operating expenses also saw a notable increase, reflecting operational challenges:
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Operating Expenses | $3.295 billion | $2.913 billion | +13.1% |
| Salaries and Benefits | $1.359 billion | $1.338 billion | +1.6% |
| Supplies | $469 million | $489 million | -4.1% |
| Other Operating Expenses | $1.010 billion | $853 million | +18.4% |
As of September 30, 2024, the company's balance sheet indicated a total stockholders' deficit of $(1.592) billion, with total liabilities amounting to $13.905 billion.
The operational environment for Community Health Systems has been impacted by various factors, including market conditions, regulatory changes, and the effects of natural disasters, such as Hurricane Helene, which resulted in an estimated loss of $7 million in operating revenues. The company's strategy continues to evolve as it navigates these challenges, including potential divestitures of non-core assets.
A Who Owns Community Health Systems, Inc. (CYH)
Current Ownership Structure
As of 2024, Community Health Systems, Inc. (CYH) has a diverse ownership structure consisting of institutional investors, individual shareholders, and various funds. The following table outlines the major shareholders along with their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Holder |
|---|---|---|
| Vanguard Group Inc. | 10.2% | Institutional |
| BlackRock Inc. | 9.8% | Institutional |
| Dimensional Fund Advisors LP | 7.5% | Institutional |
| Wellington Management Co. LLP | 5.6% | Institutional |
| State Street Corp. | 4.9% | Institutional |
| Individual and Retail Investors | 25.0% | Individual |
| Others (Various Funds) | 36.4% | Institutional |
Stock Performance and Market Activity
As of September 30, 2024, Community Health Systems, Inc. reported a net loss attributable to stockholders of $(391) million for the three months ended September 30, 2024, compared to $(91) million for the same period in 2023. The stock price has shown volatility, reflecting market conditions and operational performance.
Recent Financial Highlights
- Net operating revenues for the nine months ended September 30, 2024, were $9.369 billion, an increase from $9.308 billion for the same period in 2023.
- The net loss for the nine months ended September 30, 2024, was $(334) million, compared to $(70) million for the same period in 2023.
- Operating expenses increased from 93.2% of net operating revenues in 2023 to 97.2% in 2024.
Debt and Financial Obligations
As of September 30, 2024, Community Health Systems reported total long-term debt of $11.467 billion, with significant obligations including:
| Debt Type | Amount (in millions) | Maturity Date |
|---|---|---|
| 8% Senior Secured Notes due 2027 | $700 | 2027 |
| 5⅝% Senior Secured Notes due 2027 | $1,757 | 2027 |
| 6⅞% Senior Notes due 2028 | $626 | 2028 |
| 10⅞% Senior Secured Notes due 2032 | $2,225 | 2032 |
| Other Debt Obligations | $6,139 | Various |
Noncontrolling Interests
The company also has noncontrolling interests reported at $231 million as of September 30, 2024. This indicates the presence of partnerships or joint ventures where the company does not hold a majority stake.
Conclusion on Ownership Dynamics
The ownership of Community Health Systems, Inc. reflects a mix of institutional and retail investors, with significant financial obligations impacting its operational flexibility. The company continues to navigate its debt structure while managing operational challenges in the healthcare sector.
Community Health Systems, Inc. (CYH) Mission Statement
Community Health Systems, Inc. (CYH) focuses on providing high-quality healthcare services to communities across the United States. The mission statement emphasizes a commitment to excellence in patient care, operational efficiency, and community engagement.
Financial Overview
As of September 30, 2024, Community Health Systems reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Operating Revenues | $3.090 billion | $3.086 billion | 0.1% |
| Net Loss | $(355) million | $(52) million | +582.7% |
| Net Loss Attributable to Stockholders | $(391) million | $(91) million | +330.8% |
| Average Length of Stay (days) | 2.4 | (6.5) | N/A |
| Inpatient Admissions | Decreased 4.1% | Increased 0.5% | N/A |
| Adjusted Admissions | Decreased 3.7% | Increased 0.4% | N/A |
Operational Metrics
As of September 30, 2024, the following operational metrics were noted:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Expenses as % of Net Revenues | 106.6% | 94.4% |
| Salaries and Benefits as % of Net Revenues | 44.0% | 43.4% |
| Supplies as % of Net Revenues | 15.2% | 15.8% |
| Other Operating Expenses as % of Net Revenues | 32.6% | 27.7% |
| Lease Cost and Rent as % of Net Revenues | 2.4% | 2.6% |
Charity Care and Self-Pay Revenue
In terms of charity care and self-pay revenues:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Self-Pay Revenue as % of Net Revenues | 1.1% | 1.5% |
| Foregone Revenue from Charity Care as % of Net Revenues | 9.8% | 11.5% |
| Direct and Indirect Costs of Charity Care as % of Net Revenues | 1.0% | 1.3% |
Debt and Financing Activities
As of September 30, 2024, Community Health Systems had the following debt metrics:
| Debt Type | Amount (in millions) |
|---|---|
| Total Debt | $11,487 |
| Long-Term Debt | $11,467 |
| Outstanding ABL Facility Borrowings | $372 |
| Cash and Cash Equivalents | $33 |
Market Performance
Community Health Systems' stock performance reflects the challenges and operational adjustments in the healthcare sector. The following metrics were noted as of September 30, 2024:
| Metric | Value |
|---|---|
| Stock Price | $2.95 |
| Market Capitalization | Approximately $390 million |
| P/E Ratio | N/A |
| Shares Outstanding | 132,376,226 |
Community Health Systems continues to focus on operational efficiencies, strategic divestitures, and enhancing patient care delivery while navigating the complexities of the healthcare market.
How Community Health Systems, Inc. (CYH) Works
Overview of Operations
Community Health Systems, Inc. (CYH) is one of the largest publicly traded hospital companies based in the United States. As of September 30, 2024, the company operates 85 hospitals across 16 states, focusing on providing a range of healthcare services including inpatient and outpatient care.
Financial Performance
For the three months ended September 30, 2024, CYH reported net operating revenues of $3.090 billion compared to $3.086 billion for the same period in 2023. The increase was primarily driven by higher inpatient and outpatient volumes, increased reimbursement rates, and favorable changes in payor mix.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Operating Revenues | $3.090 billion | $3.086 billion | +0.1% |
| Net Loss | $(391) million | $(91) million | - |
| Net Loss per Share | $(2.95) | $(0.69) | - |
| Inpatient Admissions | Decreased 4.1% | Increase 0.5% | - |
| Adjusted Admissions | Decreased 3.7% | Increase 0.4% | - |
Operating Expenses
Operating expenses increased to $3.295 billion for Q3 2024, compared to $2.913 billion for Q3 2023. The increase was attributed to higher salaries and benefits, as well as costs associated with technology modernization initiatives.
Debt and Liquidity
As of September 30, 2024, CYH reported total long-term debt of $11.467 billion. The company completed the offering of an additional $1.225 billion in Senior Secured Notes due 2032 in June 2024, which were used to redeem previous debt and for general corporate purposes.
Patient Accounts Receivable
As of September 30, 2024, patient accounts receivable amounted to $2.043 billion, down from $2.231 billion at the end of 2023. The reduction reflects improved collection efforts and a lower volume of outstanding receivables.
Charity Care and Self-Pay Revenues
For the three months ended September 30, 2024, self-pay revenues represented approximately 1.1% of net operating revenues, while the amount of foregone revenue related to charity care services was approximately 9.8%.
Recent Challenges
CYH faced interruptions in business due to Hurricane Helene in September 2024, incurring estimated losses of $7 million in operating revenues and additional costs related to response efforts.
Conclusion of Financial Review
As of September 30, 2024, CYH's financial performance reflects a mixture of challenges and opportunities, with a focus on operational efficiency and strategic adjustments to its service offerings.
How Community Health Systems, Inc. (CYH) Makes Money
Revenue Breakdown
Community Health Systems, Inc. generates its revenue primarily through various payor sources. The following table outlines the approximate percentages of net operating revenues by payor source for the periods ended September 30, 2024, and 2023:
| Payor Source | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Medicare | 18.2% | 19.7% |
| Medicare Managed Care | 17.5% | 16.1% |
| Medicaid | 14.2% | 14.8% |
| Managed Care and other third-party payors | 49.0% | 47.9% |
| Self-pay | 1.1% | 1.5% |
| Total | 100.0% | 100.0% |
Net Operating Revenues
For the three months ended September 30, 2024, Community Health Systems reported net operating revenues of approximately $3.090 billion, a slight increase from $3.086 billion for the same period in 2023. For the nine months ended September 30, 2024, net operating revenues were $9.369 billion, compared to $9.308 billion in 2023.
Operating Performance Metrics
Key performance metrics for the three months ended September 30, 2024, compared to the same period in 2023 are as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Inpatient Admissions | Decrease of 4.1% | Increase of 0.5% |
| Adjusted Admissions | Decrease of 3.7% | Increase of 0.4% |
| Same-store Net Operating Revenues | Increase of 5.1% | Increase of 5.1% |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $3.295 billion, compared to $2.913 billion for the same period in 2023. Significant components of operating expenses include:
| Expense Category | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Salaries and Benefits | $1.359 billion | $1.338 billion |
| Supplies | $469 million | $489 million |
| Other Operating Expenses | $1.010 billion | $853 million |
| Lease Cost and Rent | $73 million | $79 million |
| Depreciation and Amortization | $117 million | $128 million |
| Impairment and (Gain) Loss on Sale of Businesses, Net | $267 million | $26 million |
Net Loss and Earnings
For the three months ended September 30, 2024, Community Health Systems reported a net loss of $(355 million), compared to a net loss of $(52 million) for the same period in 2023. The net loss attributable to Community Health Systems stockholders was $(391 million) for Q3 2024, compared to $(91 million) in Q3 2023.
Debt and Financing Activities
As of September 30, 2024, total long-term debt stood at approximately $11.487 billion. The company completed the offering of $1.225 billion in additional senior secured notes during June 2024, which were used for various refinancing and corporate purposes.
Cash Flow from Operations
Net cash provided by operating activities increased to approximately $264 million for the nine months ended September 30, 2024, compared to $120 million for the same period in 2023. Cash paid for interest was $562 million in 2024, down from $583 million in 2023.
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Article updated on 8 Nov 2024
Resources:
- Community Health Systems, Inc. (CYH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Community Health Systems, Inc. (CYH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Community Health Systems, Inc. (CYH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.