Ahead of releasing its full third-quarter financial results this coming week, last Wednesday, after the markets closed, Community Health Systems provided an earnings preview that included an estimated loss from continuing operations before income taxes of $83 million.
That compares with income from continuing operations of $121 million in last year’s third quarter.
Net operating revenue for the quarter fell from $4.85 billion in 2015 to approximately $4.38 billion this year. The decrease was attributed to lower-than-expected volume and larger-than-anticipated reductions to reimbursement from state supplemental programs. Total admissions for the quarter were down 12.4 percent from the previous year’s third quarter.
In response to the news, CHS’ stock closed at $5.23 on Friday, down nearly 50 percent from the previous day’s close. That left CHS with a market capitalization of $594.3 million, down from approximately $7 billion last summer.