Becker's Hospital Review

6 CFO / FINANCE CHS reports $42M net loss in Q3 By Nick Thomas F ranklin, Tenn.-based Community Health Systems reported a net loss of $42 million for the third quarter amid continued high labor costs, fewer inpatient admissions, unfavorable payer issues and a generally challenging environment. The loss compares with net income of $111 million in the same period ending Sept. 30, 2021. The company also reported a net loss of $369 million for the nine months ending Sept. 30 compared with net income of $52 million for the same period in 2021. CHS lost operating revenues and incurred incremental expenses of approximately $10 million as a direct result of Hurricane Ian, which affected some of its facilities in Florida when it made landfall in late September. That figure could be adjusted once insurance issues are considered, the company said. In addition, CHS received $108 million in pandemic-related relief during the third quarter and $160 million in relief through the first nine months of 2022. CHS operates across 16 states with 81 acute care hospitals and more than 1,000 other clinical sites. n Intermountain's income hits $2.2B By Laura Dyrda S alt Lake City-based Intermountain Healthcare reported higher year-over-year net income for the nine months ending Sept. 30, 2022, after completing the acquisition of Broomfield, Colo.-based SCL Health on March 31. Intermountain reported net income increased 1 percent year over year to $2.2 billion for the nine months ending Sept. 30, down from $2.7 billion at the six months ending June 30. The combined system includes 33 hospitals and 385 clinics in six states, and COO Rob Allen was promoted to CEO on Nov. 17 after former CEO Marc Harrison, MD, departed in August to lead General Catalyst's healthcare platform business. Revenue hit $10.2 billion, up from nearly $8 billion over the same period in 2021. Employee compensation and benefits hit $4.3 billion, up from nearly $3 billion over the same period in 2021. Expenses overall increased from nearly $7 billion for the first nine months of 2021 to $9.5 billion for 2022. Earnings before interest, depreciation and amortization was $749 million for the nine months ending Sept. 30, down from $974 million over the same period in 2021. Net cash provided by operating activities was $453 million as of Sept. 30, down from $609 million the same period in 2021. Inpatient surgeries remained about the same for the first nine months of 2022 as in 2021, sitting at 36,152 for this year. Outpatient surgeries increased 4.2 percent to 138,419. n Providence's operating loss grows to $1.1B for 2022 By Andrew Cass P rovidence, a 51-hospital system headquartered in Renton, Wash., ended the first nine months of 2022 with an operating loss of $1.1 billion, according to financial documents released Nov. 14. e system said in a Nov. 11 news release that its third quarter financial results showed the "ongoing impact of inflation, the national healthcare labor shortage, delayed reimbursement from payers, global supply chain disruptions and financial market weakness." For the nine months ended Sept. 30, Providence's operating revenues were $19.6 billion on a pro forma basis, up from $18.8 billion during the same period in 2021, according to the report. e pro forma results exclude the operations of Newport Beach, Calif.-based Hoag Hospital. Providence and Hoag ended their affiliation in January. Operating expenses over the first nine months of 2022 were $20.7 billion, a 7 percent increase over the same period in 2021 on a pro forma basis. is includes a 9 percent increase in salary and benefits due to the cost of agency staff, overtime and wage increases, according to the release. It also includes a 6 percent increase in supply costs, driven by an 8 percent increase in pharmaceutical spending. Providence said financial market weakness and volatility drove investment losses of $1.4 billion for the first nine months of 2022, bringing the system's unrestricted cash and investments to $9.1 billion. "Healthcare delivery systems across the country face unprecedented challenges, and Providence has not been immune," Providence President and CEO Rod Hochman, MD, said in the release. "However, just as we have for more than 165 years, we will continue to be here to meet the health care needs of our communities. While we still have a journey ahead of us, we are moving in the right direction and are beginning to see signs of renewal this quarter. My deepest gratitude to the caregivers of Providence for continuing to focus on the Mission and serving those in need, especially those who are most vulnerable, with excellence and compassion." n

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