Becker's Hospital Review

34 CFO / FINANCE CHS' loss shrinks to $328M in Q4 By Ayla Ellison F ranklin, Tenn.-based Community Health Sys- tems, which operates 110 hospitals in 19 states, saw its net loss narrow in the fourth quarter of 2018. CHS said operating revenues climbed to $3.45 billion in the fourth quarter of 2018, up 12.9 percent from $3.06 billion in the same period of the year prior. e company saw higher revenue despite experiencing a year-over-year decline in patient volume and owning fewer hospitals than in the fourth quarter of 2017. CHS said same-hospital admissions decreased 0.5 percent year over year. When adjusted for outpatient activity, same-hospital admissions were down 0.1 percent in the fourth quarter of 2018 compared to the same period a year earlier. Aer factoring in operating expenses and one-time charges, CHS ended the fourth quarter of 2018 with a net loss attributable to stockholders of $328 million. at's compared to the fourth quarter of 2017, when the company recorded a net loss of $2 billion. "Our fourth quarter marked a strong finish to the year," CHS Chairman and CEO Wayne T. Smith said in an earnings release. "During 2018, our market lead- ers made significant progress across areas such as our patient safety and connectivity, competitive position in core markets, and operational efficiency. ese stra- tegic investments and our solid execution drove en- hanced same-store performance during 2018." Looking at full-year 2018 results, CHS reported a net loss of $788 million on revenues of $14.16 billion. e company posted a net loss of $2.46 billion on revenues of $15.35 billion in 2017. CHS announced in late 2017 that it intends to sell a group of hospitals with combined revenue of $2 bil- lion. e company made significant progress toward that goal last year. During 2018, CHS completed 11 hospital divestitures and permanently closed three hospitals. e com- pany has completed three hospital divestitures this year and has four other hospitals under definitive agreement to sell. "e company intends to continue its portfolio ratio- nalization strategy in 2019 and is pursuing additional interests for sale transactions, which are currently in various stages of negotiation with potential buyers," states the earnings release. e hospital divestitures have helped CHS reduce its debt load. e company's long-term debt totaled $13.39 billion as of Dec. 31, down from $13.88 billion at the end of 2017. n 2 South Carolina hospitals agree to close, transfer services to new facility By Ayla Ellison U nder an agreement announced Feb. 22, Lake City (S.C.) Com- munity Hospital and Williamsburg Regional Hospital in King- stree, S.C., will close and a new 25-bed critical access hospital will be built somewhere between the two communities. Four things to know: 1. Under a letter of intent, Charleston-based Medical University of South Carolina would build, own and operate a $50 million hospital that would replace Lake City Community Hospital and Williamsburg Regional Hos- pital. The location for the new hospital has not been finalized. 2. Leaders said the replacement hospital is desperately needed. Wil- liamsburg Regional Hospital has been operating out of a temporary facility since April 2016 after damage caused by more than 30 inch- es of rainfall rendered the original hospital building unsafe and un- usable. Like many other rural hospitals across the nation, Lake City Community Hospital is facing financial challenges. 3. "Through our many affiliations with community and regional hospi- tals, and through our extended telehealth network, MUSC Health has established meaningful, life-saving collaborations and outreach across the state," MUSC Health CEO Patrick J. Cawley, MD, said in a press re- lease. "The restoration of a critical access hospital in this rural commu- nity and the added connectivity to MUSC specialists and resources will benefit the lives of everyone in the area." 4. Officials said construction of the new hospital is expected to take be- tween 24 and 36 months. The opening date is projected as fall 2022. n LifeBridge Health to acquire Bon Secours Baltimore Hospital By Leo Vartorella B altimore-based LifeBridge Health has signed a letter of intent with Cincinnati-based Bon Secours Mercy Health to acquire Bon Secours Baltimore Hospital. The systems will hold a series of community meetings to share de- tails of the transition. The Bon Secours Community Works program will remain active and continue to focus on community health by ad- dressing social determinants of health such as affordable housing and career services. "Bon Secours Baltimore Hospital is a vital part of the west Baltimore community. As a Baltimore-based health system, LifeBridge Health envisions building on Bon Secours' strong foundation to provide a comprehensive and enhanced plan for all levels of healthcare ser- vices," said Neil Meltzer, president and CEO of LifeBridge Health. "At the same time, we want to bring additional resources to the community to address needs related to employment, addiction and other challenges." n

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