http://www.beckershospitalreview.com/finance/chi-records-483m-operating-loss-as-labor-costs-grow-patient-volume-declines.html

Catholic Health Initiatives, a nonprofit 103-hospital system based in Englewood, Colo., recorded an operating loss of $483.3 million in fiscal year 2016, compared to an operating surplus of $23.9 million in the year prior.

CHI reported revenue of $15.9 billion in FY 2016, up 7.4 percent from $14.8 billion in FY 2015.

However, rising expenses offset the system’s revenue gains. CHI said expenses increased 10.2 percent year over year to $16.1 billion in FY 2016.

“Lower patient volumes, higher labor costs, increased pharmacy prices and reduced reimbursement in Medicare and Medicaid all contributed to CHI’s financial performance in the 2016 fiscal year,” the system said in a written statement.

CHI ended FY 2016 with a net loss of $703.2 million, compared to a net gain of $113.6 million in FY 2015.

CHI officials expect financial performance to improve in FY 2017. “CHI is focused on several key areas for increased efficiency and expense reduction — including labor, supply chain, administrative overhead, revenue cycle and pharmacy services,” the system said. “We are confident these efforts will yield substantial improvement in overall operating and financial performance as we progress through the current fiscal year.”

http://www.modernhealthcare.com/article/20161027/NEWS/161029917

Investor confidence in Community Health Systems plummeted Thursday as losses in the third quarter previewed by the company after the close of markets Wednesday caused its stock to fall nearly 50%.

CHS’ stock closed the day at $5.05 per share, down $4.98 per share or 49.65%.

In a preview of third-quarter results to be announced next week, Franklin, Tenn.-based CHS Wednesday reported a loss from continuing operations before income taxes of $83 million compared with income from continuing operations of $121 million in the third quarter of 2015.

Hospital divestitures, lower-than-expected volumes and reductions to reimbursement from state supplemental programs combined to cause revenue to fall in the quarter to $4.4 billion from $4.8 billion in the year-earlier quarter, the company said.

CHS for the third straight quarter lowered its EBITDA guidance. It is now saying that earnings before income tax, depreciation and amortization in 2016 are expected to be in a range of $2.2 billion to $2.8 billion compared with last quarter’s estimate of $2.4 billion to $2.6 billion. The chain is the nation’s second-largest investor-owned hospital company with 159 hospitals.

A CHS spokeswoman did not respond to a request for comment about Thursday’s stock losses.

http://www.beckershospitalreview.com/finance/trinity-health-revenue-increases-but-operating-margin-shrinks.html

Trinity Health saw revenue increase in fiscal year 2016, but higher expenses caused the Livonia, Mich.-based system’s operating margin to decline.

Trinity reported revenue of $16.3 billion in FY 2016, a 14 percent year-over-year increase from revenue of $14.3 billion in FY 2015, according to recently released audited financial documents.

Higher expenses offset the system’s revenue growth. Trinity reported operating expenses of $16.2 billion in FY 2016, up 16.7 percent from FY 2015. The system’s acquisitions of Syracuse, N.Y.-based based Saint Joseph’s Hospital Health Center and Hartford, Conn.-based Saint Francis Care accounted for $1.4 billion, or 10.3 percent, of the year-over-year growth in expenses. Trinity also reported higher costs related to salaries and wages, supplies and purchased services.

The system ended FY 2016 with operating income of $46.4 million, down from $457.7 million in the year prior. Excluding asset impairment charges and a premium revenue adjustment, Trinity recorded operating income of $151.3 million in FY 2016, down from operating income of $470 million in FY 2015. Trinity recorded an operating margin of .9 percent in the most recent fiscal year, compared to an operating margin of 3.3 percent in FY 2015.