CYH
Community Health Systems INC
NYSE
10-K: Community Health Systems Reports Fiscal Year 2024 Results in Form 10-K Filing
Sentiment:
Annual Results
19 February 2025 4:31 PM
Community Health Systems releases its 10-K filing, detailing financial results for the fiscal year ended December 31, 2024, including revenue, expenses, and strategic initiatives.
Worse than expected
The company reported a net loss attributable to Community Health Systems, Inc. stockholders of $516 million in 2024, compared to a net loss of $133 million in 2023.
Summary
- Community Health Systems (CHS) released its Form 10-K filing for the fiscal year ended December 31, 2024.
- The company operates healthcare delivery systems in 15 states, owning or leasing 76 hospitals and over 1,000 sites of care.
- Net operating revenues for 2024 were $12.634 billion, compared to $12.490 billion in 2023.
- The company reported a net loss attributable to Community Health Systems, Inc. stockholders of $516 million in 2024, compared to a net loss of $133 million in 2023.
- Adjusted EBITDA was $1.540 billion in 2024, compared to $1.453 billion in 2023.
- The company's strategy includes strengthening regional networks, expanding patient access points, and recruiting physicians.
- CHS is standardizing and centralizing operations across key business areas to increase productivity and efficiency.
- The company is focused on continuously improving patient safety and quality of care.
- The company is subject to extensive government regulation and fraud and abuse laws.
- The company is facing workforce challenges and increased labor costs.
- The company is committed to workforce diversity and competency.
- The company is subject to environmental laws and regulations.
- The company is involved in various legal proceedings.
- The company is implementing a compliance program to adhere to applicable laws and regulations.
Sentiment
Score: 5
Explanation: The document presents a mixed sentiment. While revenue and adjusted EBITDA increased, the company reported a net loss. The document also outlines various risks and challenges, balancing positive and negative aspects.
Positives
- Net operating revenues increased to $12.634 billion in 2024.
- Adjusted EBITDA increased to $1.540 billion in 2024.
- The company is focused on expanding outpatient services and recruiting physicians.
- The company is standardizing and centralizing operations to improve efficiency.
- The company is continuously improving patient safety and quality of care.
- The company is committed to workforce diversity and competency.
Negatives
- The company experienced a net loss attributable to stockholders of $516 million in 2024.
- The company is facing workforce challenges and increased labor costs.
Risks
- The company's indebtedness could adversely affect its ability to meet obligations.
- The company may not be able to generate sufficient cash to service its indebtedness.
- Restrictive covenants in debt agreements may adversely affect the company.
- Challenging macroeconomic conditions may adversely impact the company.
- The company may be unable to complete divestitures or acquisitions as planned.
- The company faces intense competition in the healthcare industry.
- Reimbursement rates may be reduced, affecting revenues.
- The company is subject to extensive government regulation and fraud and abuse laws.
- Cyber-attacks and security breaches could harm the business and patients.
- The company may face material non-cash charges from impairment of goodwill or long-lived assets.
Future Outlook
The company expects to continue its strategic initiatives, including strengthening regional networks, expanding patient access points, and improving operational efficiencies. They anticipate capital expenditures between $350 million and $400 million in 2025.
Industry Context
The document provides context on the U.S. hospital industry, demographic trends, consolidation, payment models, and the shift to outpatient services, highlighting the competitive landscape and factors affecting performance.
Comparison to Industry Standards
- The document mentions the American Hospital Association's data on community hospitals in the U.S., indicating that CHS operates within a broader industry context.
- The document references the Centers for Medicare & Medicaid Services (CMS) projections for healthcare spending, providing a benchmark for industry growth.
- The document mentions HealthTrust Purchasing Group, L.P., a group purchasing organization, which benefits members through scaled pricing.
Stakeholder Impact
- Shareholders are impacted by the company's financial performance and strategic decisions.
- Employees are affected by workforce challenges, labor costs, and compensation programs.
- Patients are impacted by the company's focus on patient safety and quality of care.
- Communities are affected by the company's presence and provision of healthcare services.
Next Steps
- The company will continue to focus on its strategic initiatives, including strengthening regional networks and expanding patient access points.
- The company will continue to standardize and centralize operations to improve efficiency.
- The company will continue to monitor and manage its debt levels.
- The company will continue to monitor and comply with applicable laws and regulations.
- The company will continue to monitor and manage cybersecurity risks.
Legal Proceedings
- The company is subject to various legal, regulatory, and governmental proceedings.
- The company is cooperating with a Department of Justice criminal investigation of a former employee's conduct.
- The company is involved in a breach of contract action, Tower Health, f/k/a Reading Health System, et al v. CHS/Community Health Systems, Inc., et al, which is pending in the United States District Court for the Eastern District of Pennsylvania.
- The company is involved in a complaint filed on October 25, 2021 in the United States Bankruptcy Court for the District of Delaware against various persons, including the Company, certain subsidiaries of the Company, certain former executive officers of the Company and Credit Suisse Securities (USA) LLC.
Key Dates
- 2000-06-14: Initial public offering of common stock.
- 2024-12-31: End of fiscal year 2024.
- 2025-02-13: Date of the report indicating 138,923,216 shares of common stock outstanding.
- 2025-05-13: Scheduled date for the 2025 Annual Meeting of Stockholders.
Keywords
financial results, healthcare, hospitals, revenue, EBITDA, debt, acquisitions, regulations, cybersecurity, risk factors
CYH
Community Health Systems INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
1 July 2025 4:30 PM
Asset Divestiture Announcement
- The transaction generated $436 million in cash proceeds for Community Health Systems.
- An estimated pre-tax gain of $143 million ($93 million after tax) was realized from the sale.
- The final cash consideration of $436 million was higher than the amended base purchase price of $430 million, indicating positive adjustments.
Capital raise
24 April 2025 4:30 PM
Quarterly Report
- CHS entered into a privately negotiated agreement with a multi-asset investment manager to issue and sell $700 million aggregate principal amount of 10% Senior Secured Notes due 2033.
- The company expects to use the net proceeds from issuance of the 10% Senior Secured Notes due 2033, together with cash on hand, to redeem the 8% Senior Secured Notes due 2027 and to pay related fees and expenses.
Better than expected
24 April 2025 4:30 PM
Quarterly Report
- The company's net income improved significantly from a net loss in the same period last year.
Better than expected
23 April 2025 4:30 PM
Earnings Release
- The net loss attributable to Community Health Systems, Inc. stockholders improved from $(41) million to $(13) million year-over-year.
Worse than expected
3 April 2025 8:30 PM
Proxy Statement
- The net loss attributable to Community Health Systems, Inc. stockholders increased from $(133) million in 2023 to $(516) million in 2024.
Worse than expected
3 March 2025 6:06 PM
SEC Form 4 Filing
- The forfeiture of a significant portion (83.2%) of the performance-based restricted shares indicates that the company's performance during the 2022-2024 period was worse than expected, failing to meet the pre-determined performance objectives.
Worse than expected
3 March 2025 6:04 PM
SEC Form 4
- The forfeiture of a significant portion of performance-based restricted shares suggests that the company underperformed relative to its targets during the 2022-2024 performance period.
Worse than expected
3 March 2025 6:02 PM
SEC Form 4 Filing
- The forfeiture of 11,850 performance-based restricted shares suggests that the company's performance did not fully meet the established objectives for the 2022-2024 performance period.
Worse than expected
19 February 2025 4:31 PM
Annual Results
- The company reported a net loss attributable to Community Health Systems, Inc. stockholders of $516 million in 2024, compared to a net loss of $133 million in 2023.
Worse than expected
18 February 2025 4:30 PM
Quarterly Earnings Release
- The company reported a net loss attributable to Community Health Systems, Inc. stockholders for Q4 2024, compared to net income in the same period of 2023.
- The company reported a larger net loss attributable to Community Health Systems, Inc. stockholders for the year ended December 31, 2024, compared to the same period in 2023.
Worse than expected
26 November 2024 4:30 PM
Material Definitive Agreement Termination
- The termination of the sale agreement is worse than expected as it removes a planned divestiture and introduces uncertainty about the future of the assets.
Delay expected
22 November 2024 4:30 PM
Asset Sale Agreement
- The Punta Gorda hospital has indefinitely suspended inpatient operations due to hurricane damage, which may cause delays in the transaction.
Worse than expected
24 October 2024 4:34 PM
Quarterly Report
- The company's net loss of $391 million in Q3 2024 is significantly worse than the $91 million loss in Q3 2023.
- The company's impairment charges and professional liability accrual adjustments are significantly higher than expected.
- The company's consolidated inpatient admissions decreased by 4.1%, indicating a decline in overall patient volume.
Worse than expected
23 October 2024 4:30 PM
Quarterly Report
- The company's net loss attributable to stockholders was significantly worse than the same period last year, increasing from $(91) million to $(391) million.
- The adjusted EBITDA decreased from $360 million to $347 million in the third quarter of 2024 compared to the same period in 2023.
- The net loss per share increased from $(0.69) to $(2.95) in the third quarter of 2024 compared to the same period in 2023.
Capital raise
25 July 2024 4:30 PM
Quarterly Report
- The company completed an offering of an additional $1.225 billion aggregate principal amount of its outstanding 10.875% Senior Secured Notes due 2032.
- Proceeds from the offering of the Tack-On Notes were used to redeem all $1.116 billion of the outstanding 8.000% Senior Secured Notes due 2026, to fund senior note repurchases, pay related fees and expenses and for general corporate purposes.
Better than expected
25 July 2024 4:30 PM
Quarterly Report
- The company's net income improved compared to the same periods in the prior year, moving from a loss to a profit.
- The company's same-store revenue growth indicates better performance in its core operations.
- The company's debt restructuring efforts, including the gain from early extinguishment of debt, positively impacted the financial results.
Delay expected
25 July 2024 4:30 PM
Quarterly Report
- The company's construction of a replacement facility in Knox, Indiana, is required to be completed by September 30, 2026, if a new lease with Starke County is not entered into.
Better than expected
24 July 2024 4:30 PM
Quarterly Report
- The company's net loss improved significantly compared to the same period last year.
- Adjusted EBITDA increased, indicating improved operational performance.
- Same-store revenues and admissions showed positive growth.
Worse than expected
21 June 2024 6:01 PM
Material Definitive Agreement Termination
- The termination of the sale is worse than expected as it disrupts CHS's strategic plans and may require a reassessment of their financial and operational strategies for the two hospitals.
Delay expected
21 June 2024 6:01 PM
Material Definitive Agreement Termination
- The sale of the two hospitals was delayed due to the FTC's legal challenge and subsequent injunction.
Capital raise
21 May 2024 9:19 PM
Debt Offering Announcement
- The company is raising $1.225 billion through a tack-on offering of senior secured notes.
- The proceeds will be used to redeem existing debt and for general corporate purposes.
Capital raise
21 May 2024 8:28 AM
Debt Offering Announcement
- The company is raising $1.125 billion through a tack-on offering of senior secured notes.
- The proceeds will be used to redeem existing debt and for general corporate purposes.
Better than expected
25 April 2024 4:32 PM
Quarterly Report
- The company's net loss improved from $20 million to $6 million year-over-year, indicating better than expected financial performance.
Delay expected
25 April 2024 4:32 PM
Quarterly Report
- The sale of Lake Norman Regional Medical Center and Davis Regional Medical Center to Novant Health, Inc. is delayed due to a complaint filed by the Federal Trade Commission.
Better than expected
24 April 2024 4:30 PM
Quarterly Report
- The company's net loss per share improved from $(0.40) to $(0.32) year-over-year.
- Adjusted EBITDA increased from $335 million to $378 million year-over-year.
- Net cash provided by operating activities increased from $5 million to $96 million year-over-year.
Delay expected
18 April 2024 4:30 PM
Asset Sale Agreement
- The agreement can be terminated if the transaction is not completed by August 31, 2024, indicating a potential for delay.
Worse than expected
28 March 2024 4:31 PM
Proxy Statement
- The company experienced a net loss attributable to stockholders of $(133) million in 2023, compared to a net income of $46 million in the prior year.
- Adjusted EBITDA decreased by 0.9% to $1.454 billion in 2023.
- Cash Flows from Operations decreased by 30.0% to $210 million.
- The stock price decreased by 27.5% as of December 31, 2023.
Worse than expected
20 February 2024 4:30 PM
Quarterly Report
- The company's net income and adjusted EBITDA decreased compared to the same periods in the previous year.
- The company reported a net loss for the full year 2023, compared to a net income in 2022.
- The company is projecting a net loss per share for 2024.
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