Community Health Systems Inc reports quarterly net profit
Community Health Systems Inc, the largest non-urban provider of general hospital healthcare services in the US in terms of number of acute care facilities, posted a quarterly net profit compared with a year-ago loss. It has treated more patients with insurance got through state and federal marketplaces established under the Affordable Care Act.
According to the second-largest publicly traded hospital operator, it results reflected its integration of Health Management Associates, which the company acquired last year. The company reaffirmed its full-year outlook for income from ongoing operations in the range of $3.40 to $4.05 a share. It has cited expectations that patient volumes will enhance because of growth in insurance exchange enrollment.
For the first quarter, the company reported net income of $79 million, or 68 cents a share compared with a net loss of $112 million a year earlier. Net operating revenue rose 17.6% to $4.91 billion. Adjusted patient admissions, involving in-patient and out-patient figures, mounted 17% in the quarter from a year ago.
Rivals HCA Holdings Inc and Tenet Healthcare Corp reported results that were increased by growth in patient visits because of the Affordable Care Act. HCA Holdings Inc is the nation's largest hospital operator. Last month, shares of Community Health hit their highest level in a year but recently because investors sold healthcare provider stocks ahead of a US Supreme Court ruling on the Affordable Care Act.
It is expected that the court's ruling in King v. Burwell will be in late June. It will decide whether millions of American people will carry on getting federal subsidies for private health insurance under President Barack Obama's healthcare law.