The financial dip was due to labor costs, and lower operating revenue which could be linked to payer changes and lower inpatient volumes.
Community Health Systems, a Franklin, Tennessee-based healthcare provider, released its fourth quarter and year-end 2022 financial results, which highlighted a decline in revenue for both the quarter and the full fiscal year.
Net operating revenues totaled $3.14 billion for the quarter, a decline from the $3.23 billion posted in the same quarter the year before. Net operating revenues for the year ended December 31, 2022, totaled $12.2 billion, a 1.3% decrease compared to $12.36 billion for the same period in 2021. Net income attributable to Community Health Systems stockholders was $414 million, or $3.18 per diluted share for the fourth quarter of 2022, compared to $178 million, or $1.34 per diluted share for the same period in 2021. Net income attributable to Community Health Systems stockholders was $46 million, or $0.35 per diluted share for the year ended December 31, 2022, compared to $230 million, or $1.76 per diluted share for fiscal 2021.
The financial dip was due to labor costs, and lower operating revenue which could be linked to payer changes and lower inpatient volumes, the organization said in the earnings release. Other challenges impacting the organization’s finances included negative macroeconomic conditions, inflationary pressures, increasing expenses, high-interest rates, and supply chain shortages and disruptions.
But despite these economic pressures, Community Health Systems is pleased with how it was able to navigate the final quarter and full fiscal year of 2022. While the organization didn’t provide guidance for fiscal 2023, it did does have a positive outlook for the year.
"We were pleased with our progress during the final quarter of the year, including solid volume growth in admissions, adjusted admissions, and surgeries," Community Health Systems CEO Tim Hingtgen, said in the report. "We also significantly reduced contract labor from its peak in early 2022, while improving overall employee recruitment and retention levels. I am grateful to our healthcare system leaders, clinicians, caregivers, and support teams for their unwavering commitment to advance patient care and achieve operational improvements in 2022. Looking forward, we are optimistic about our opportunities in 2023."
Amanda Schiavo is the Finance Editor for HealthLeaders.